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Broadband Mobility<br />

Welcome Aboard<br />

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data and the latest multimedia applications. It’s all about charting your own course. At NextNet, we believe in the<br />

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True convergence of broadband and mobility isn’t just a vision anymore. It’s happening now. Welcome aboard.<br />

For more information, call NextNet today at 952-929-4008 or visit us at www.nextnetwireless.com<br />

©2005 NextNet Wireless, Inc. All Rights Reserved. NextNet is a registered trademark of NextNet Wireless, Inc.


T<br />

his issue of <strong>Connect</strong>-<strong>World</strong> EMEA (Europe, the Middle<br />

East and Africa) explores how technology ties and<br />

binds the growing relations between the developing<br />

and the developed regions of the world. The theme of<br />

this issue is EMEA and ICT – Positioning for Change.<br />

Information and Communication Technology (ICT) is<br />

shaping the way the world is developing. This is nothing<br />

new, of course. Historically, every major new technology<br />

has shaped, re-shaped and divided the world<br />

between those that control and use the technology<br />

and those that do not.<br />

The digital divide could have been just one more<br />

example of this, but the rapid drop in the technology’s<br />

cost, the rapid return on investment, as well as<br />

the concerted efforts of governments, institutions and<br />

international organisations, turn ICT into the cure for<br />

its own ills.<br />

The EMEA region encompasses a broad range, not just<br />

of geographies, but also of societies and needs. The<br />

new technologies bring opportunity to all, but the sort<br />

of change they will bring to the Middle East and Africa<br />

is several orders of magnitude more earth shaking<br />

than the change they will bring to Europe. Whereas in<br />

most of Europe ICT will bring important, but incremental<br />

change, in much of Africa and the Middle East<br />

the changes will be nothing less than revolutionary.<br />

Regions long cut-off from the benefits of the latest<br />

technologies, from any substantial commerce with the<br />

more developed parts of the world, and with little<br />

cultural interchange, will now, for better and worse,<br />

come face-to-face with all the changes these developments<br />

bring.<br />

Governments, international agencies, regional industries,<br />

service providers, businesses large and small,<br />

and local communities all now need to position themselves<br />

to absorb the benefits and minimise the social<br />

and business risks.<br />

This issue of <strong>Connect</strong>-<strong>World</strong> focuses upon what this<br />

technology invasion means to people, communities,<br />

businesses, service providers and equipment suppliers<br />

in Europe the Middle East and Africa.<br />

It points to the need of governments<br />

and companies to plan for the<br />

change.<br />

Similarly, in <strong>Connect</strong>-<strong>World</strong>’s Africa<br />

and the Middle East, Asia-Pacific,<br />

Europe, India, North America and<br />

Latin America issues, each region’s leaders look at the<br />

issues that drive the development of their home<br />

regions or countries.<br />

Current discussions centre upon the changes wrought<br />

in industry and society by the latest generation of<br />

information and communications technology – especially<br />

Internet protocol digital communications, and<br />

how both business and society are changing, need to<br />

change, as a result.<br />

<strong>Connect</strong>-<strong>World</strong>’s next Global edition will focus upon<br />

the United Nation’s <strong>World</strong> Summit on the Information<br />

Society – the WSIS. This event, organised by the ITU,<br />

will take place on 16 th -18 th November in Tunis. There,<br />

heads of state, ministers, regulators, government delegations,<br />

leaders of industry and international organisations<br />

from throughout the world will gather to<br />

finalise the plans – developed during years of preparatory<br />

meetings – to realise a worldwide, universal,<br />

information society and provide a blueprint for the<br />

building of a global information economy.<br />

<strong>Connect</strong>-<strong>World</strong> is inviting world leaders of industry<br />

and government, including heads of state and ministers,<br />

to share, in our Global edition, their ideas about<br />

how the great goals of the world summit can be<br />

realised, how the world can go about building a truly<br />

global information economy.<br />

The special <strong>Connect</strong>-<strong>World</strong> Global Edition, in honour<br />

of the WSIS, in addition to our normal global mailing,<br />

will be distributed to all those attending the WSIS, as<br />

well as to a substantial, select, list of world leaders.<br />

Fredric J. Morris,<br />

Editor-in-Chief<br />

<strong>Connect</strong>-<strong>World</strong><br />

C<br />

onnections<br />

Editor-in-Chief:<br />

Fredric J. Morris<br />

fredric.morris@connect-world.com;<br />

Publisher:<br />

David Nunes<br />

david.nunes@connect-world.com;<br />

Managing Director:<br />

Valetta Brown<br />

admin@connect-world.com;<br />

Printers: Grupo Bigsa<br />

All rights reserved. No part of this publication may be reproduced, stored in a retrieval<br />

system or transmitted in any form or by any means electronical, mechanical, photocopying,<br />

recording or otherwise, without prior permission from the publishers. The content<br />

of this Publication is based on best knowledge and information available at the time<br />

of publication. No responsibility for any injury, death, loss, damage or delay, however<br />

caused, resulting from the use of the material can be accepted by the publishers or others<br />

associated with its preparation. The publishers neither accept responsibility for, nor<br />

necessarily agree with, the views expressed by contributors.<br />

<strong>Connect</strong>-<strong>World</strong> EMEA Issue 2005 is published under Licence by WORLD INFOCOMMS LTD<br />

Executive Office: Global House 12 Albert Road London E16 2DW United Kingdom<br />

Tel.: +44 20 7540 0876 Fax: +44 20 7474 0090<br />

email: info@connect-world.com URL: www.connect-world.com<br />

ISSN 1748-6998<br />

1


T<br />

his issue of <strong>Connect</strong>-<strong>World</strong> EMEA (Europe, the Middle<br />

East and Africa) explores how technology ties and<br />

binds the growing relations between the developing<br />

and the developed regions of the world. The theme of<br />

this issue is EMEA and ICT – Positioning for Change.<br />

Information and Communication Technology (ICT) is<br />

shaping the way the world is developing. This is nothing<br />

new, of course. Historically, every major new technology<br />

has shaped, re-shaped and divided the world<br />

between those that control and use the technology<br />

and those that do not.<br />

The digital divide could have been just one more<br />

example of this, but the rapid drop in the technology’s<br />

cost, the rapid return on investment, as well as<br />

the concerted efforts of governments, institutions and<br />

international organisations, turn ICT into the cure for<br />

its own ills.<br />

The EMEA region encompasses a broad range, not just<br />

of geographies, but also of societies and needs. The<br />

new technologies bring opportunity to all, but the sort<br />

of change they will bring to the Middle East and Africa<br />

is several orders of magnitude more earth shaking<br />

than the change they will bring to Europe. Whereas in<br />

most of Europe ICT will bring important, but incremental<br />

change, in much of Africa and the Middle East<br />

the changes will be nothing less than revolutionary.<br />

Regions long cut-off from the benefits of the latest<br />

technologies, from any substantial commerce with the<br />

more developed parts of the world, and with little<br />

cultural interchange, will now, for better and worse,<br />

come face-to-face with all the changes these developments<br />

bring.<br />

Governments, international agencies, regional industries,<br />

service providers, businesses large and small,<br />

and local communities all now need to position themselves<br />

to absorb the benefits and minimise the social<br />

and business risks.<br />

This issue of <strong>Connect</strong>-<strong>World</strong> focuses upon what this<br />

technology invasion means to people, communities,<br />

businesses, service providers and equipment suppliers<br />

in Europe the Middle East and Africa.<br />

It points to the need of governments<br />

and companies to plan for the<br />

change.<br />

Similarly, in <strong>Connect</strong>-<strong>World</strong>’s Africa<br />

and the Middle East, Asia-Pacific,<br />

Europe, India, North America and<br />

Latin America issues, each region’s leaders look at the<br />

issues that drive the development of their home<br />

regions or countries.<br />

Current discussions centre upon the changes wrought<br />

in industry and society by the latest generation of<br />

information and communications technology – especially<br />

Internet protocol digital communications, and<br />

how both business and society are changing, need to<br />

change, as a result.<br />

<strong>Connect</strong>-<strong>World</strong>’s next Global edition will focus upon<br />

the United Nation’s <strong>World</strong> Summit on the Information<br />

Society – the WSIS. This event, organised by the ITU,<br />

will take place on 16 th -18 th November in Tunis. There,<br />

heads of state, ministers, regulators, government delegations,<br />

leaders of industry and international organisations<br />

from throughout the world will gather to<br />

finalise the plans – developed during years of preparatory<br />

meetings – to realise a worldwide, universal,<br />

information society and provide a blueprint for the<br />

building of a global information economy.<br />

<strong>Connect</strong>-<strong>World</strong> is inviting world leaders of industry<br />

and government, including heads of state and ministers,<br />

to share, in our Global edition, their ideas about<br />

how the great goals of the world summit can be<br />

realised, how the world can go about building a truly<br />

global information economy.<br />

The special <strong>Connect</strong>-<strong>World</strong> Global Edition, in honour<br />

of the WSIS, in addition to our normal global mailing,<br />

will be distributed to all those attending the WSIS, as<br />

well as to a substantial, select, list of world leaders.<br />

Fredric J. Morris,<br />

Editor-in-Chief<br />

<strong>Connect</strong>-<strong>World</strong><br />

C<br />

onnections<br />

Editor-in-Chief:<br />

Fredric J. Morris<br />

fredric.morris@connect-world.com;<br />

Publisher:<br />

David Nunes<br />

david.nunes@connect-world.com;<br />

Managing Director:<br />

Valetta Brown<br />

admin@connect-world.com;<br />

Printers: Grupo Bigsa<br />

All rights reserved. No part of this publication may be reproduced, stored in a retrieval<br />

system or transmitted in any form or by any means electronical, mechanical, photocopying,<br />

recording or otherwise, without prior permission from the publishers. The content<br />

of this Publication is based on best knowledge and information available at the time<br />

of publication. No responsibility for any injury, death, loss, damage or delay, however<br />

caused, resulting from the use of the material can be accepted by the publishers or others<br />

associated with its preparation. The publishers neither accept responsibility for, nor<br />

necessarily agree with, the views expressed by contributors.<br />

<strong>Connect</strong>-<strong>World</strong> EMEA Issue 2005 is published under Licence by WORLD INFOCOMMS LTD<br />

Executive Office: Global House 12 Albert Road London E16 2DW United Kingdom<br />

Tel.: +44 20 7540 0876 Fax: +44 20 7474 0090<br />

email: info@connect-world.com URL: www.connect-world.com<br />

ISSN 1748-6998<br />

1


T<br />

his issue of <strong>Connect</strong>-<strong>World</strong> EMEA (Europe, the Middle<br />

East and Africa) explores how technology ties and<br />

binds the growing relations between the developing<br />

and the developed regions of the world. The theme of<br />

this issue is EMEA and ICT – Positioning for Change.<br />

Information and Communication Technology (ICT) is<br />

shaping the way the world is developing. This is nothing<br />

new, of course. Historically, every major new technology<br />

has shaped, re-shaped and divided the world<br />

between those that control and use the technology<br />

and those that do not.<br />

The digital divide could have been just one more<br />

example of this, but the rapid drop in the technology’s<br />

cost, the rapid return on investment, as well as<br />

the concerted efforts of governments, institutions and<br />

international organisations, turn ICT into the cure for<br />

its own ills.<br />

The EMEA region encompasses a broad range, not just<br />

of geographies, but also of societies and needs. The<br />

new technologies bring opportunity to all, but the sort<br />

of change they will bring to the Middle East and Africa<br />

is several orders of magnitude more earth shaking<br />

than the change they will bring to Europe. Whereas in<br />

most of Europe ICT will bring important, but incremental<br />

change, in much of Africa and the Middle East<br />

the changes will be nothing less than revolutionary.<br />

Regions long cut-off from the benefits of the latest<br />

technologies, from any substantial commerce with the<br />

more developed parts of the world, and with little<br />

cultural interchange, will now, for better and worse,<br />

come face-to-face with all the changes these developments<br />

bring.<br />

Governments, international agencies, regional industries,<br />

service providers, businesses large and small,<br />

and local communities all now need to position themselves<br />

to absorb the benefits and minimise the social<br />

and business risks.<br />

This issue of <strong>Connect</strong>-<strong>World</strong> focuses upon what this<br />

technology invasion means to people, communities,<br />

businesses, service providers and equipment suppliers<br />

in Europe the Middle East and Africa.<br />

It points to the need of governments<br />

and companies to plan for the<br />

change.<br />

Similarly, in <strong>Connect</strong>-<strong>World</strong>’s Africa<br />

and the Middle East, Asia-Pacific,<br />

Europe, India, North America and<br />

Latin America issues, each region’s leaders look at the<br />

issues that drive the development of their home<br />

regions or countries.<br />

Current discussions centre upon the changes wrought<br />

in industry and society by the latest generation of<br />

information and communications technology – especially<br />

Internet protocol digital communications, and<br />

how both business and society are changing, need to<br />

change, as a result.<br />

<strong>Connect</strong>-<strong>World</strong>’s next Global edition will focus upon<br />

the United Nation’s <strong>World</strong> Summit on the Information<br />

Society – the WSIS. This event, organised by the ITU,<br />

will take place on 16 th -18 th November in Tunis. There,<br />

heads of state, ministers, regulators, government delegations,<br />

leaders of industry and international organisations<br />

from throughout the world will gather to<br />

finalise the plans – developed during years of preparatory<br />

meetings – to realise a worldwide, universal,<br />

information society and provide a blueprint for the<br />

building of a global information economy.<br />

<strong>Connect</strong>-<strong>World</strong> is inviting world leaders of industry<br />

and government, including heads of state and ministers,<br />

to share, in our Global edition, their ideas about<br />

how the great goals of the world summit can be<br />

realised, how the world can go about building a truly<br />

global information economy.<br />

The special <strong>Connect</strong>-<strong>World</strong> Global Edition, in honour<br />

of the WSIS, in addition to our normal global mailing,<br />

will be distributed to all those attending the WSIS, as<br />

well as to a substantial, select, list of world leaders.<br />

Fredric J. Morris,<br />

Editor-in-Chief<br />

<strong>Connect</strong>-<strong>World</strong><br />

C<br />

onnections<br />

Editor-in-Chief:<br />

Fredric J. Morris<br />

fredric.morris@connect-world.com;<br />

Publisher:<br />

David Nunes<br />

david.nunes@connect-world.com;<br />

Managing Director:<br />

Valetta Brown<br />

admin@connect-world.com;<br />

Printers: Grupo Bigsa<br />

All rights reserved. No part of this publication may be reproduced, stored in a retrieval<br />

system or transmitted in any form or by any means electronical, mechanical, photocopying,<br />

recording or otherwise, without prior permission from the publishers. The content<br />

of this Publication is based on best knowledge and information available at the time<br />

of publication. No responsibility for any injury, death, loss, damage or delay, however<br />

caused, resulting from the use of the material can be accepted by the publishers or others<br />

associated with its preparation. The publishers neither accept responsibility for, nor<br />

necessarily agree with, the views expressed by contributors.<br />

<strong>Connect</strong>-<strong>World</strong> EMEA Issue 2005 is published under Licence by WORLD INFOCOMMS LTD<br />

Executive Office: Global House 12 Albert Road London E16 2DW United Kingdom<br />

Tel.: +44 20 7540 0876 Fax: +44 20 7474 0090<br />

email: info@connect-world.com URL: www.connect-world.com<br />

ISSN 1748-6998<br />

1


Contents<br />

1-<strong>Connect</strong>ions<br />

5-Contents<br />

Nationaldevelopment<br />

6<br />

Regulating for growth in Germany<br />

by Matthias Kurth, President, the Regulatory Authority for<br />

Telecommunications and Posts, Germany<br />

Regionalcommunications<br />

11<br />

Bringing the future to Africa<br />

by Peter Gbedemah, co-Founder and CEO, Gateway<br />

Communications<br />

IP networks<br />

15<br />

IP – the new universal language for<br />

communication networks<br />

by Thomas Mock, Senior Vice President, Strategic Planning<br />

Ciena Corporation<br />

IP communicationsassurance<br />

19<br />

Getting ready for IP communications<br />

Assurance<br />

by William Burns, President, Service Assurance-Broadband,<br />

Spirent Communications<br />

Broadband<br />

22<br />

25<br />

The broadband revolution: power to the<br />

people<br />

by Rik Missault, Vice President Marketing and<br />

Communications, Fixed Solutions Division, Alcatel<br />

High-performance broadband – thinking<br />

beyond the pipe<br />

by Peter Linder, Technical Director Wireline Networks,<br />

Business Unit Systems, Ericsson<br />

Mobilevalue-addedservices<br />

47<br />

Voice-based value-added services:<br />

delivering on their promises<br />

by Marshall Kavesh, co-Founder, Chairman and CEO, European<br />

Computer Telecoms Group (ECT)<br />

Mobiletelephony<br />

50<br />

54<br />

Mobile in Botswana – the development edge<br />

by José António Ferreira, CEO, Mascom Wireless, Botswana<br />

What mobile telephony brings to Uganda<br />

by Noel Meier, CEO MTN Uganda<br />

Businesscommunications<br />

57<br />

Positioning business for global commerce<br />

by Brian Day, Vice President, Carrier Voice and Multimedia,<br />

Nortel, Europe, Middle East and Africa<br />

CulturaldevelopmentandtheInternet<br />

60<br />

Oman’s culture, the Internet and a<br />

changing world<br />

by Mohammed Al-Wahaibi, Executive President, Oman<br />

Telecommunications Company<br />

Serviceassurance<br />

63<br />

Service assurance – defining the way<br />

by Asif Naseem, Board Member, Service Availability Forum,<br />

Senior Vice President and Chief Technology Officer, GoAhead<br />

Software<br />

Tripleplay<br />

32<br />

36<br />

IPTV: rethinking broadcasting<br />

by Ed Graczyk, Director of Marketing and Communications,<br />

Microsoft TV Division<br />

Last chance for telco profitability: triple<br />

play networks<br />

by Kevin DeNuccio, President and CEO, Redback<br />

Useranddevelopercommunities<br />

39<br />

IT has entered the participation age<br />

by Darrell Jordan-Smith, Vice President, Global<br />

Telecommunications, Sun Microsystems<br />

Mobileconvergence<br />

43<br />

Emerging opportunities in a destructive<br />

environment<br />

by Raghu Rau, Corporate Vice President, Global Marketing and<br />

Strategy, Networks, Motorola<br />

Advertisements<br />

NextNet Wireless<br />

Motorola<br />

Microsoft<br />

Telefónica<br />

Redback Networks<br />

MTC<br />

Bechtel Telecom<br />

UT Starcom<br />

Nexus Telecom<br />

Turkcell<br />

I. E. Consortium<br />

Carriers <strong>World</strong> 05<br />

i3<br />

GSM <strong>World</strong><br />

RFID <strong>World</strong><br />

Detecon<br />

Broadband Russia 05<br />

Number Portability 05<br />

Iran Telecom 05<br />

Telecom&Broadband 05<br />

Telecoms <strong>World</strong> 05<br />

e-Secure Malaysia<br />

Acterna<br />

Ericsson<br />

IFC<br />

2-3<br />

4<br />

7<br />

10<br />

13<br />

14<br />

17<br />

21<br />

24<br />

27<br />

29<br />

34<br />

37<br />

40<br />

42<br />

45<br />

48<br />

51<br />

56<br />

59<br />

62<br />

IBC<br />

OBC<br />

PromotionalFeatures<br />

Newport Networks<br />

MTC<br />

18<br />

30-31<br />

All articles are available online at: www.connect-world.com 5


National Development<br />

Regulating for growth in Germany<br />

by Matthias Kurth, President, the Regulatory Authority for Telecommunications and Posts,<br />

Germany<br />

Marketplayersbringservicesandnewapplicationsforcustomers.IPtechnologyandthe<br />

introductionofnextgenerationnetworksofferthemhugepotentialinthisregard,but<br />

onlyforuserswithbroadbandconnections.ThespreadofIP-basedbroadbandnetworks<br />

requirestheoversightandsupportofregulatoryauthoritiestomakenewservicessecure<br />

andavailabletoaswideacustomerbaseaspossiblethroughcompetition.Guaranteeing<br />

competitiveaccesstothecostlylastmileinfrastructureiscriticaltothegrowthofhealthy<br />

competition.<br />

MatthiasKurthisthePresidentofGermany’sRegulatoryAuthorityforTelecommunicationsandPosts,<br />

having previously been its Vice President. During his career, he has been Director of Business<br />

Development,LawandRegulationforCOLTTelekomGmbH,ChairmanoftheConferenceofHeadsof<br />

AdministrationoftheMinistersofEconomics,atfederalandstatelevelandMemberoftheSupervisory<br />

BoardoftheDeutscheAusgleichsbank.MrKurthhasalsobeenRepresentativeoftheStateofHessein<br />

the Committee of the Regions of the European Union, Representative of the State of Hesse in the<br />

Regulatory Council for Posts and Telecommunications, State Secretary in the Hesse Ministry of<br />

Economics,TransportandUrbanandRegionalDevelopment,HeadofAdministrationandPermanent<br />

DeputyoftheMinister,ParliamentarySecretaryandDeputyChairmanoftheSPDGroupintheLand<br />

Parliament, member of the Presidium of the Hesse Land Parliament and judge at the Darmstadt<br />

RegionalCourt.<br />

MathiasKurthstudiedLawandEconomicsatFrankfurtamMainUniversity,andwasapostgraduate<br />

legaltraineeintheAdministrationofJusticeoftheStateofHesse.<br />

InternetProtocolandnext<br />

generationnetworks<br />

TheInternetasaninformationmediumhasalreadyrevolutionisedsociety<br />

around the world and opened up<br />

entirely new markets and business<br />

models. This trend is by no means<br />

over. The Internet Protocol and next<br />

generation networks will transform<br />

the telecommunications and media<br />

landscape.Someseethisprocessasa<br />

revolution, while others consider it<br />

more evolutionary. Yet more crucial,<br />

is that it will happen and is unstoppable,nationallyandinternationally.<br />

Thisdynamicwillre-energizecompetition.<br />

It is important now that the<br />

competitive structures that emerged<br />

fromthetraditionalline-switchednetworksarenotstymiedor,worse,eliminated<br />

because of IP technology. All<br />

competitors, without exception, must<br />

take up the challenge of structural<br />

change. Yet it is also important to<br />

makesurethatcompanieswithsignificant<br />

market power do not deploy<br />

technologies that limit other companies'accessorcompetitiveopportuni-<br />

ties. Network and services interoperability<br />

is the crucial issue facing the<br />

markets.<br />

Itisatthispointthatregulationkicks<br />

in. The job of the regulatory authoritiesistoshapetheregulatoryenvironmentinsuchawaythatcompetitionis<br />

notdistortedandinvestmentissecured<br />

evenattimesoftechnologicalchange.<br />

Regulation must therefore focus on<br />

the real bottlenecks. Access to networksandnetworkelements,thelast<br />

mile, is most critical in the end customer<br />

area. The last mile cannot be<br />

replicated without great cost. Access<br />

toitisthereforerestrictedtoexclude<br />

competitors from essential facilities<br />

or, at least, to delay their provision.<br />

Non-discriminatory provision of<br />

scarceresourcessuchasnumbersand<br />

radiospectrummustalsobesecured.<br />

Thejobofthemarketplayersistofurther<br />

develop services and devise new<br />

applications for the customers. The<br />

conversion to IP technology and the<br />

introduction of next generation networks<br />

offer huge potential in this<br />

regard. Network intelligence, today<br />

still located in the network itself, is<br />

shiftingmoreandmoretotheterminal<br />

equipment, in other words closer<br />

to the user. Ultimately, users will be<br />

able to decide for themselves what<br />

servicestouse,andwillpossiblyconfigure<br />

their own or use the services<br />

offeredfromoneormoreproviderson<br />

oneormoreplatforms.<br />

Theoretically, then, the network is<br />

simplifying as the service offer<br />

expands,creatingsynergiesintheprovisionofnetworkcapacitywhileopening<br />

up diverse service offers for the<br />

users. The benefits for users and<br />

henceforfurthergrowthareclear.<br />

Nevertheless, there are risks. New<br />

services and technologies create new<br />

potentialforfraudandnegativeinfluences.Already,thedamagecausedby<br />

spam, phishing, unlawful diallers,<br />

Trojan horses, worms and viruses in<br />

Europe alone is estimated to reach<br />

severalbillioneurosannuallyandthe<br />

trendisupwards.<br />

Such activities have already deterred<br />

many from using services such as<br />

home banking, online shopping and<br />

6


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National development<br />

"Users will be able to<br />

decide for themselves<br />

what services to use,<br />

and will possibly<br />

configure their own or<br />

use the services<br />

offered from one or<br />

more providers on one<br />

or more platforms."<br />

premium rate services. Online sales<br />

could be significantly higher if the<br />

Internet were more secure. The cost<br />

advantages of home banking or electronic<br />

services could benefit companiesandcustomersalike.<br />

Wecannotexpecttopreventeachand<br />

every form of fraud and misuse,<br />

despite specific measures, but it is<br />

essentialnottobecomplacent,andto<br />

strengthen users' confidence in technologyandservicesbytakingaction.<br />

Constantvigilance<br />

TheGermanregulatoryauthorityhas<br />

been largely successful combating<br />

dialler misuse by, for example, compiling<br />

a register of diallers that must<br />

meetpreciselydefinedconsumerprotection<br />

requirements. Yet experience<br />

showstheneedforconstantvigilance,<br />

due to constant efforts to circumvent<br />

therequirements.<br />

The universal nature of the Internet<br />

allowsactivitiestobemovedtoother<br />

countries, consequently preventing<br />

national regulatory authorities from<br />

intervening.<br />

In many cases, objectives require<br />

international action flanked by<br />

national measures. These measures<br />

should not be the responsibility of<br />

stateinstitutionsalone.Networkoperators<br />

and service providers should<br />

playapart.<br />

Concerted action is the only way to<br />

stemabuseandspurgrowth.TheITU<br />

hasafundamentalroleinternationally,<br />

co-ordinating as it does internationalInternetgovernance.<br />

friendlyspeed.Currently,then,broad-<br />

band and its promotion is one of the<br />

most important issues in Germany<br />

andEuropeasawhole.<br />

The European Regulators Group<br />

(ERG),agroupofnationalregulatory<br />

authorities created by the European<br />

Commission, is currently addressing<br />

issues of broadband penetration. An<br />

ERG working group headed by the<br />

German regulatory authority has<br />

begunanempiricalstudyofdevelopments<br />

in the broadband access market.<br />

Assisted by national regulatory<br />

authorities,ithascollectedimportant<br />

data that allow initial conclusions to<br />

be drawn about the extent to which<br />

regulatory strategies and the availability<br />

of regulated access stimulate<br />

competition.<br />

Thestudybeginsbylookingatthecurrentstructuresintheindividualmemberstates.Whereasinothercountries<br />

cable provides a large number of<br />

broadband connections, the number<br />

of cable connections in Germany,<br />

compared to telephone network DSL<br />

connections, is very low. Of the 6.9<br />

million broadband connections in<br />

Germany at the end of 2004, only<br />

145,000 were by cable. The data<br />

shows that in many countries only<br />

intermodal competition triggered by<br />

cablehasthrowndownthegauntletto<br />

thetelephonecompanies.<br />

The study shows that a diversified<br />

rangeofaccessproductsboostscom-<br />

petitioninthebroadbandmarketcon-<br />

siderably. The ERG is currently discussingamodelbasedona'ladderof<br />

investment'. The ladder stands for a<br />

rangeofaccessproducts,thedifferent<br />

stages of an investment scenario for<br />

competitors.<br />

Thefirstrungoftheladderrepresents<br />

pure resale, while the next rung, bit<br />

stream access, leads to the fully<br />

unbundledlocalloop.Thetoprungis<br />

self-operatedinfrastructure.<br />

The broadband market is well<br />

advanced wherever many wholesale<br />

productsareavailableonmanyrungs<br />

of the ladder. This facilitates market<br />

entry, since entry is possible at any<br />

point.<br />

Access products, however, must be<br />

consistentlypricedsothatacompetitor<br />

entering lower down the ladder<br />

canmoreeasilyclimbtothenextrung.<br />

Provision should be made for migration<br />

paths facilitating the move from<br />

one rung to another. For example,<br />

competitors acquiring customers by<br />

way of resale should have access to<br />

consistently priced products such as<br />

bitstreamaccess.<br />

The ladder describes the various<br />

stages of the value chain which competitors<br />

can reach, step-by-step, successivelyreplacingwholesaleproducts<br />

they initially bought with their own<br />

infrastructure. When they have<br />

reachedthetoprungandpossessinfra-<br />

Promotingbroadband<br />

TheservicesenabledbyIPtechnology<br />

and next generation networks will<br />

onlybeavailabletouserswithbroadband<br />

connections, allowing them to<br />

usethewholespectrumofservicesin<br />

user-friendly quality and at user-<br />

Figure 1: The broadband market is well advanced wherever many wholesale products are available<br />

on many rungs of the ladder.<br />

8


National development<br />

"The universal nature<br />

of the Internet allows<br />

activities to be moved<br />

to other countries,<br />

consequently<br />

preventing national<br />

regulatory authorities<br />

from intervening."<br />

structure, the regulation of wholesale<br />

productscanstarttoberolledback.<br />

At present, a host of detailed questions<br />

are being discussed. How can,<br />

forinstance,newaccessproductssuch<br />

as ‘standalone bit stream access’ that<br />

are being demanded be integrated<br />

meaningfully in the ladder of investmentHowcanconsistentpriceregulationbesecuredforthewholeofthe<br />

ladder What are the implications of<br />

theuseofIPtechnologyandnextgeneration<br />

networks for the existing<br />

PSTN(publicswitchedtelephonenetwork),<br />

particularly with regard to<br />

costsandhencepriceregulationgenerally<br />

Will there be a new interconnection<br />

regime with different cost<br />

allocation<br />

Finally, we do not know whether the<br />

current European regulatory frameworkwillbeabletoclarifytheseissues<br />

or whether, here too, modifications<br />

willprovenecessary.<br />

Competition<br />

The European telecoms regulators<br />

debatedthesequestionsatlengthata<br />

broadbandseminarinBledattheend<br />

of May. The national regulators will<br />

have to make their own assessments<br />

through studies of the broadband<br />

market,butthereisacommonunderstandingthatbroadbandpromotionis<br />

aconcernofallmemberstates.<br />

Looking at the ladder of investment<br />

situation in Germany, competition in<br />

thecentresofpopulationisalreadyon<br />

theupperrungs.Measuredbythefigures<br />

for full unbundling, Germany is<br />

leading the way. There are more<br />

unbundledlocallooprentalsherethan<br />

inalltheotherEUMemberStates.<br />

"To catch up with the<br />

leaders in Europe’s<br />

broadband markets, we<br />

will have to intensify<br />

competition."<br />

In the cities, competitors have much<br />

of their own infrastructure and thus,<br />

apartfromthelastmile,largelyhave<br />

no need for Deutsche Telekom AG's<br />

wholesale products. Outside these<br />

conurbations,thecompetitors,mainly<br />

resellers, are wholly reliant on<br />

DeutscheTelekom'sinfrastructure.<br />

Competitionthereisonamuchlower<br />

rung of the ladder and is much less<br />

prevalentthaninFrance,forinstance,<br />

as can be seen in the price of DSL<br />

access. Where competitors provide<br />

DSL access using unbundled local<br />

loopspricesarelowest,thatistosay,<br />

withalotoftheirowninfrastructure.<br />

To catch up with the leaders in<br />

Europe’s broadband markets, we will<br />

have to intensify competition.<br />

Regarding unbundled local loops, we<br />

have created a pro-competitive environment<br />

with our latest reduction in<br />

themonthlyrental.<br />

Whereintermodalcompetitionisconcerned,weexpect,byawardingspectrum<br />

for Fixed Wireless Access,<br />

WiMAX,etc.,toacceleratebroadband<br />

penetration outside conurbations<br />

throughwirelessaccess.<br />

Finally,themissingmiddlerungofthe<br />

ladder,bitstreamaccess,notyetavailable<br />

in Germany, may be a sensible<br />

addition to the range of wholesale<br />

products, particularly outside the<br />

conurbations. The French experience<br />

demonstrates that infrastructurebasedcompetitioninnowaysuffersas<br />

a result, while market penetration<br />

benefitsconsiderably.<br />

ThespreadofIP-basednetworksand<br />

servicesisaprocessthatmustbeoverseen<br />

and supported by regulatory<br />

authorities.<br />

Crucialforusertake-upiswhetherwe<br />

manage to make the new services<br />

secure,resistanttofraudandmisuse,<br />

and available to as wide a customer<br />

base as possible through the promotionofbroadband.<br />

This is the only way to maximise the<br />

markets' growth potential and boost<br />

theglobaleconomy.Doingsoisahuge<br />

challenge for the regulatory authorities,bothatnationalandinternationallevel,achallengethatcanbeovercomeonlybyjoiningforcesandacting<br />

together.<br />

www.connect-world.com<br />

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9


Regional communications<br />

Bringing the future to Africa<br />

by Peter Gbedemah, co-Founder and CEO, Gateway Communications<br />

Traditionally, high charges, long implementation delays and poor service limited the<br />

growth of African communications services. New technologies, such as wireless and<br />

VoIP,arechangingthis,withominousimplicationsforAfrica’sexpensive,oftenunreliable,fixedlineoperators.Africa’ssocialandeconomicdevelopmenthasspurreddemand<br />

forreliable,costeffectivetelecommunications.Pre-paidGSMphonepackages,costingas<br />

littleasUS$5,makewirelesstelecommunicationsavailabletolow-incomeAfricanswho<br />

nowspendasmuchastwo-thirdsoftheirhouseholdearningsoncommunications.<br />

PeterGbedemahisaco-FounderofGatewayCommunicationsanditsCEO.Heisresponsiblefordriving<br />

the company’s growth by developing a highly efficient pan-African network and delivering high<br />

qualitycommunicationsservicestoGSMserviceproviders,PTTsandenterprisesthroughoutthecontinent.MrGbedemahhasmorethan20yearsofexperiencewithinthecommunicationsandtechnology<br />

marketsandawide-rangingbackgroundinmanagement,systemsengineeringandbusinessdevelopment.HehasworkedextensivelyinAfricaandhasabroadknowledgeoftheregulatory,economicand<br />

businessenvironmentwithinthecontinent.MrGbedemahhasheldanumberofseniorexecutivepositionswithCitigroup,BritishTelecommunications,BTNorthAmericaandNetSourceCommunications<br />

Inc.<br />

Peter Gbedemah holds a BSc (Hons) degree in Software Engineering from the University of<br />

Birmingham.<br />

BecauseoftheG8summit,theeyesof<br />

theworldarelookingtoAfrica,seekingnewwaysofkeepingdollarsgeneratedinAfricawithinAfrica.Onearea<br />

in which this is already happening is<br />

theresultofprofoundchangestothe<br />

waypeopleinAfricacommunicateby<br />

telephone,andthisaffectseverything<br />

from the economic structure of the<br />

continent to the services provided by<br />

carriersandoperators.<br />

Traditional African telecommunicationsarechangingasnextgeneration<br />

networksbridgethecontinent,leaving<br />

hardlyacalleruntouched.Callswithin<br />

Africa that once looped through<br />

EuropenowstayinAfricaandtherevenues<br />

go to the African carriers that<br />

deliver the calls locally instead of to<br />

carriers in London or Paris. This has<br />

had a real impact on the quality and<br />

affordabilityofcallingwithinAfrica.<br />

<strong>Connect</strong>ing people with mobile and<br />

satellite is a basic prerequisite for<br />

Africa’sdigitalfuture,anddirectinterconnectivity,<br />

mobile-to-mobile,<br />

between networks is what ties it all<br />

together. Few individual companies<br />

haveenoughexpertsonthegroundto<br />

observeallthechangesthataretaking<br />

place in Africa. It is the mobile-tomobilecarriers,thosethatcarrymost<br />

ofthecontinent’sinternationaltraffic<br />

by interconnecting the more than 40<br />

mobilenetworksin30countries,that<br />

have been best able to recognise and<br />

reacttonewtrendsinadvance.<br />

NewageinAfrica<br />

Withtheintroductionofnextgeneration<br />

network (NGN) and voice over<br />

Internet protocol (VoIP) technology,<br />

theageofswitchingmobiletelephone<br />

calls in the skies over Africa has<br />

arrived.<br />

Multi-milliondollarinvestmentswere<br />

neededtobuildtheinfrastructurethat<br />

controls the more than 350 satellite<br />

links to approximately 80 earth stationsanddrivesthedigitalrevolution<br />

forward by creating the largest<br />

mobile-to-mobile network in Africa.<br />

The experience gained from this vast<br />

interconnection of African mobile<br />

operatorsenablesthecarrierstopredicttheneedsanddemandsofAfrica’s<br />

futuremobilephoneusers.<br />

Africaisleadingthemobilerevolution<br />

inmanyplaces,butqualityisthemost<br />

important aspect the whole telecom<br />

evolutionthatweareseeing.Asvoice<br />

quality increases, so too does the<br />

lengthofthecallsandthenumberof<br />

value-added services, such as multimedia<br />

messaging, the caller uses.<br />

When the line does not work well,<br />

when the call quality is poor, consumers<br />

will not even consider using<br />

additionalservices.<br />

The network is the backbone of the<br />

next generation services offered by<br />

Africanoperators.Theplanningofthe<br />

lastdecadehasprettymuchbeenconsigned<br />

to the dustbin as carriers and<br />

operatorsalikerevisebusinessmodels<br />

to accommodate the fast pace of<br />

changeandnewtechnologies.<br />

At the centre of the planning is the<br />

networkinfrastructureandequipment<br />

11


Regional communications<br />

to carry the new services. Industry<br />

leadersknowthatwhenthenetworkis<br />

not up to speed, revenue is lost. As<br />

technologies forge ahead, there is a<br />

veryrealdangerthat,withoutresilient<br />

networks with huge capacity at their<br />

disposal,theabilitytooffernewservicesremainsattheplanningstage.<br />

Given the advanced technologies<br />

available,thefutureishereandnow.<br />

Phone users in Africa now demand<br />

morefromtheiroperators.Theywant<br />

tobeabletoaccessthesameservices<br />

andthesamequality,asinEuropeor<br />

NorthAmerica.<br />

VoIPindustry<br />

The booming VoIP industry sees the<br />

needforquality.Africahasembraced<br />

VoIP as a cost-effective and reliable<br />

meanstocommunicatenotjustinternationally,oronapan-Africanbasis,<br />

butlocallywithineachcountryaswell.<br />

Traditionally, pan-African landline<br />

services have been the preserve of a<br />

relatively affluent, chosen minority<br />

because of high usage charges, long<br />

service implementation delays and<br />

poorservice.Consumers,andspecialistsalike,nowseeVoIPasthewayto<br />

bring communications services to<br />

mostofAfrica.<br />

For fixed line operators in Africa,<br />

whoseexpensiveandunreliableservicesstruggletocompeteagainstVoIP<br />

networks,theimplicationsoftheshift<br />

to VoIP are ominous. VoIP has<br />

broughttelecommunicationstothousands<br />

of people who have never had<br />

accesstotelecommunications.<br />

Africaisalivewithfastmovingpeople<br />

and businesses. It is undergoing significant<br />

economic development and<br />

social change brought about by<br />

greater freedom of movement. As a<br />

result, there is growing demand for<br />

wireless telephone services, for reliable<br />

and cost effective telecommunications.<br />

Landline penetration is currently<br />

under1.5percentandincumbenttelecommonopoliesacrossthecontinent<br />

havebeenslowtoreacttochangesin<br />

theAfricanbusinessclimate.<br />

VoIPserviceproviderscanreactmore<br />

rapidly to market conditions because<br />

of their efficient telecommunications<br />

infrastructure. These service<br />

providers are playing a key role in<br />

buildingAfrica’sabilitytotakepartin<br />

the global information society, the<br />

digitalage.<br />

Fixedline<br />

Thedevelopmentoffixedlinecommunicationsisstillconstrainedbyanumber<br />

of factors including the speed of<br />

deregulationwithintheAfricancontinent.<br />

Althoughgovernmentsareliberalising<br />

thetelecomsector,marketdemandfor<br />

more efficient, cost effective VoIP<br />

services often overtakes government<br />

plans.<br />

The use of mobile phones in Africa<br />

reflectsthis:mobileusagedramatically<br />

exceeds that of fixed line devices.<br />

Theperceivedvalueofmobilephones,<br />

evenbythelow-incomepopulation,is<br />

suchthatAfricansspendasignificantly<br />

higher portion of their household<br />

earnings on communications than in<br />

thedevelopedworld.Studiesindicate<br />

that low-income Africans spend as<br />

much as two-thirds of household<br />

incomeoncommunications.<br />

"The use of mobile<br />

phones in Africa<br />

reflects this: mobile<br />

usage dramatically<br />

exceeds that of fixed<br />

line devices."<br />

Recentstatisticsshowtherearesome<br />

36 million African mobile phone<br />

users,afigurethatisgrowingatarate<br />

of135percentayear.VoIPandGSM<br />

havegainedmarketshareasfixedline<br />

operators have lost control of their<br />

relationshipswiththeirusers.<br />

VoIP is successful because it has the<br />

right blend of technology, relationshipsandexpertisetodeliver.Webest<br />

see this in developing regions where<br />

telecommunications services have<br />

never been able to penetrate before.<br />

As the growth of GSM wireless networks<br />

and other new technologies<br />

continueinthesedevelopingregions,<br />

peoplearebeginningtoact,toparticipate,<br />

globally, while working and<br />

thinkinginanAfricancontext.<br />

Internationalcarriersarenowactively<br />

seekingtouselocalskillsandempower<br />

communities rather than taking a<br />

superficial approach to the needs of<br />

themarket.<br />

The success and meteoric rise in the<br />

year-on-yeargrowthinAfricanmobile<br />

communications is largely due to the<br />

localapproachtotheirbusiness,with<br />

an intrinsically African strategy, that<br />

operatorshavetaken.<br />

Costofcalls<br />

The falling cost of calls, driven by<br />

VoIP,isfundamentalforAfricanbusinessusers.Untilnow,thehighcostof<br />

calling throughout Africa (fixed-line<br />

operatorsdonotmaintaindirectbilateral<br />

relationships) has kept trade<br />

withineachcountry’sboundaries.<br />

Deregulation and private partnership<br />

agreements have sparked a massive<br />

fall in the cost of African country-tocountrycallsandspurredinvestment<br />

in technology including VoIP.<br />

Consequently, micro-enterprises and<br />

large corporations can both trade<br />

effectively without substantial investmentincommunicationsequipment.<br />

In the last year, there has been an<br />

upsurge in wireless usage both for<br />

businessandforresidentialuserswho<br />

justwanttotalkwithfriendsandrelatives.Today,lowcostphonepackages<br />

makeitpossibleforentirelow-income<br />

households,perhapswithneighbours,<br />

to pool their resources and share a<br />

phone. With pre-paid GSM phone<br />

packages costing as little as US$5,<br />

telecommunicationsarenowavailable<br />

inlow-incomeregionsofAfricawhere<br />

previouslyphoneswerealuxury.<br />

WAP enabled handsets in the early<br />

‘90s provided the first value-added<br />

servicebreakthrough.Today,interactive<br />

games, music messaging and<br />

video streaming are coming online.<br />

Downloadableorstreamedupdatesof<br />

cricket,rugby,soccer,motorracingor<br />

golfareavailableaspremiumservices,<br />

allowingphoneuserstocatchthelatestscores,gamehighlights,teamprofilesandreplaysofkeymoments.<br />

Streamingservicessendmusicvideos,<br />

movie clips or broadcasting of live<br />

concerts, while audio options gives<br />

phone users access to songs or live<br />

radiothroughtheirphones.<br />

Mobilesarericherandmoreinvolved<br />

theneverbefore,soplatformshaveto<br />

bemoreflexibleandpowerfultosupportnewservicesastheycomeonline.<br />

Africaisliketherestoftheworld:peopletherelovetotalk.Phonesareemotionally<br />

charged, very personal possessions.<br />

They make a statement<br />

aboutwhotheowneris.Theyletpeoplemakestatementsaboutthemselves<br />

by personalising their ring tones and<br />

thedisplaystheyputontheirscreens.<br />

<br />

12


IP networks<br />

IP – the new universal language for communication networks<br />

by Thomas Mock, Senior Vice President, Strategic Planning Ciena Corporation<br />

As traditional voice services shift to VoIP and broadcast television toward IPTV, the<br />

migrationtoIPischangingthefaceofallcommunications.By2009,nearlyeveryphone<br />

callmadeintheUKwillbeoverIP.AnIP-basedinfrastructure,inadditiontolowercost<br />

calling,providesmanyotheradvantagesthanworldwidetelephonenumberportability.<br />

Thereare11millionpeoplegloballyusingVoIP–twicethoseninemonthsago–andan<br />

increasingnumberofoperatorsandserviceproviderssupporttheseservices.<br />

ThomasMockiscurrentlySeniorVicePresident,StrategicPlanningforCienaCorporation.Inthisrole,<br />

he is responsible for defining Ciena’s LightWorks Architecture and supporting product definition,<br />

requirements,strategyandmarketingofCiena’sportfolioofnetworkingsolutions.Beforeassumingthis<br />

position,MrMockservedastheCompany’sVicePresidentofPortfolioManagementandpreviouslyas<br />

Senior Director of Product Management. He was also Product Marketing Director for Ciena's Short<br />

HaulandAccessproductlines.MrMockjoinedCienaastheInternationalProductMarketingManager.<br />

BeforeCiena,hemanagedtheproductdevelopmentorganisationforaT1multiplexercompany.<br />

ThomasMockreceivedhisBSEEfromtheGeorgiaInstituteofTechnology.<br />

Theturbulenceinthetelecommunicationsindustryinrecentyearshasbeen<br />

dramatic. Despite the challenging<br />

market environment, technologies<br />

havecontinuedtodevelopatanastonishingpace,andthepersistentgrowth<br />

of broadband services has driven a<br />

shiftinnetworkinfrastructure.<br />

As businesses progress to keep up<br />

with the market and new services,<br />

companies like BT with its 21st<br />

Century Network are positioning<br />

InternetProtocol(IP)tobecometheuniversallanguagefortelecommunications.<br />

IP enables the convergence of voice,<br />

data and video services onto a single<br />

network.Astraditionalvoiceservices<br />

shift to Voice over IP and broadcast<br />

televisiontowardIPTV,themigration<br />

toIPischangingtheinterfaceofcommunications<br />

for all users, from businessestogovernmenttoconsumers.<br />

The rise in deployments of IP networkshasledtosomepredictionsthat<br />

by2009nearlyeveryphonecallmade<br />

intheUKwillbeoverIP.<br />

Growthincommunicationstechnology,<br />

attributed to the Internet and<br />

advanced services like broadband, is<br />

leadingthemarkettohungerforfaster<br />

connectionspeeds,greaterbandwidth<br />

andadditionalservicessuchasVoiceover-IP<br />

(VoIP), IPTV (Internet<br />

Protocol Television) and Video on<br />

Demand (VOD). As the adoption of<br />

thesenewservicesandotherapplications<br />

rises, so does bandwidth consumption.<br />

The older ‘legacy’ systems, designed<br />

when voice traffic and revenue predominated,notbasedonIPtechnology,arestrugglingtokeepupwiththe<br />

services users demand. In response,<br />

service providers are employing IP,<br />

originally created as a method for<br />

best-effort communication between<br />

computers, support more efficiently<br />

andreliablytothemountingnumber<br />

of diverse telephony, television and<br />

mission-criticalbusinessapplications.<br />

MigratingtoIPdoesnotmeanacompletechangeinacarrier’sserviceportfolio.<br />

They will still need to offer the<br />

sameoldtelephonyservicestheyhave<br />

alwaysprovided.Unlikethetelevision<br />

broadcasting standard, which will<br />

switchover to digital broadcasting by<br />

government decree by December<br />

2012, carriers and service providers<br />

cannot force their customers to<br />

change their voice services.<br />

Businesses and residential customers<br />

alike purchase voice service based<br />

upon cost, performance and/or customerservice.<br />

In essence, the migration to IP lets<br />

endusersreceivetheircurrentservices,<br />

but gives them the option to use<br />

new advanced offerings from their<br />

suppliers,nomatterhowtheyareconnectedtothenetwork.<br />

Maintaining traditional services as<br />

theyturnoffpartsoftheirnetworkto<br />

build new infrastructure is a huge<br />

undertaking for the carriers. By<br />

migrating to IP, operators can<br />

upgrade their networks to handle<br />

advancedserviceswhilstmaintaining,<br />

withnodifferencefortheenduse,traditionalvoiceservices.<br />

15


IP networks<br />

IP provides a foundation for a commoninfrastructureforallcommunications,<br />

thereby improving efficiency<br />

andaccess.Drivenbymarketdemand<br />

for new services and applications, IP<br />

now provides a low-cost, friendly<br />

means for carrying multiple traffic<br />

types for a variety of services. It is a<br />

technology,which,foronce,thecommunications<br />

sector and the end user<br />

are wholly embracing, and one that<br />

will essentially revolutionise the way<br />

wecommunicate.<br />

ThemovetoEthernet<br />

As part of the move to IP infrastructure,serviceprovidersarealsocapitalizing<br />

on Ethernet, a cost-efficient<br />

technology originally developed to<br />

connect data networking equipment<br />

withinalocalareanetwork(LAN).<br />

Network operators have discovered<br />

thatacombinationofIPandEthernet<br />

technologies provides easier connectivityandcostefficiencies.Ethernet’s<br />

beautyisnotjustitsprice,butalsoits<br />

abilitytodeliverspeedsupto10Gbps.<br />

Service providers are using Ethernet<br />

to provide high-speed connectivity to<br />

theircustomersand,regardlessofthe<br />

existing underlying architecture, in<br />

virtually every portion of their networks.<br />

Insuchadiverseindustry,withmultiplestandardsfornearlyeverytechnology<br />

available, Ethernet provides stability.<br />

It is a technology universally<br />

understoodbybothITstaffandtelecomserviceprovidersalike.Thisfacilitates<br />

network migration and helps<br />

standardise solutions and open lines<br />

ofcommunicationfromtheoutset.<br />

Critical to the service provider and<br />

both residential and business endusers,<br />

IP with Ethernet can provide<br />

reliability, speed and availability as<br />

good as, or better than, legacy networks.<br />

As a result, service providers<br />

enjoymeaningfulcostsavingsandsignificantincreasesinnetworkflexibility.Thisgivestheendusergreatervarieties<br />

of services and packaging at<br />

lowerprices.<br />

ThebenefitsofIP<br />

TheIPrevolutionoffersmanybenefits<br />

toconsumersandenterprises.IPlets<br />

businesses broaden their range of<br />

servicesandreducecosts.Bysubstantially<br />

reducing the phone bill, purchasersbecomemoreinclinedtotake<br />

advantage of the available budget to<br />

add new services. Service providers,<br />

for their part, tend to offer a greater<br />

varietyofbundledservices.<br />

The security that IP can provide to<br />

enterprises is also important. Using<br />

IP-based virtual private networks<br />

(VPN), an enterprise can secure its<br />

intranetandextranetwhilstbringinga<br />

newWeb-centricethostothecompany.<br />

This is crucial for e-commerce,<br />

whichisstillgreatlyunder-utilisedby<br />

manyorganisations.<br />

"Ethernet’s beauty is not<br />

just its price, but also<br />

its ability to deliver<br />

speeds up to 10 Gbps."<br />

AnIP-basedinfrastructuregivesbusiness<br />

users practical benefits such as<br />

VoiceoverIP(VoIP).UsingVoIP,the<br />

telephonenumberoftheorganisation<br />

becomesportable,soabusinessbased<br />

in the United Kingdom can have a<br />

United States telephone number to<br />

save on long-distance expenses.<br />

Likewise, when an enterprise moves,<br />

itcankeepitsoriginalnumberregardlessofitsnewlocation.<br />

These benefits extend to residential<br />

users as well, thus allowing them to<br />

take their telephone numbers with<br />

themwherevertheygo.Therearecurrently<br />

11 million people worldwide<br />

usingVoIP–afigurethathasdoubled<br />

in the past nine months, and an<br />

increasing number of operators and<br />

serviceprovidersaresupportingthese<br />

services.<br />

"IP provides a<br />

foundation for a<br />

common infrastructure<br />

for all communications,<br />

thereby improving<br />

efficiency and access."<br />

Whatcomesnext<br />

At present, the UK communications<br />

industryisbuzzingwithBT’srecently<br />

announced21stCenturyNetwork.BT,<br />

though, is not the first, and certainly<br />

willnotbethelast,tobuildanIP-centricnetwork.Indeed,manynewtechnologies<br />

implemented by large carriers<br />

have often been first tested and<br />

experimentedwithbysmallercarriers<br />

or by research and education networks.<br />

The safety net under the IP<br />

push is that alternative carriers and<br />

cable companies worldwide have<br />

alreadyprovenitsvalueandfunctionality,<br />

paving the way for incumbent<br />

serviceproviderstoheadinthesame<br />

direction.<br />

So,whatwilltheindustryandtheend<br />

user see, or not, during the next few<br />

years As with all new technologies,<br />

therewillcertainlybegrowingpains,<br />

many of which could be unforeseen.<br />

TheevolutiontoIPbeganinthecore<br />

network, and as it works its way out<br />

toward the network’s edge, the enduser<br />

will be the last to witness the<br />

change. The operators will bear the<br />

burdenofimplementingthetransition<br />

of the physical infrastructure and<br />

enablingthedeliveryofnewservices,<br />

andifallgoesasplanned,theshiftwill<br />

bevirtuallyinvisibletotheenduser.<br />

Ofcourse,theshifttoIPandEthernet<br />

willtakesometime.Mostcarriersare<br />

beginning to implement IP now, but<br />

slowlyandatarelativelysmallscale.<br />

Althoughitwillbesomeyearsbefore<br />

IP is fully in place worldwide, it is<br />

already recognised as the universal<br />

language for communications infrastructureandservices.<br />

Lookingahead<br />

So, where are we now and where are<br />

wegoingwiththeIPrevolutionItis<br />

evident that by implementing IP and<br />

Ethernet, we will see a marked<br />

improvement in cost-efficiencies and<br />

bandwidth availability, whilst service<br />

providersshouldalsofinditeasierto<br />

turnaprofit.<br />

Ultimately, the shift to IP will create<br />

more competition. Cable companies<br />

willstrivetoofferthesameservicesas<br />

telecomsorganisationsandviceversa.<br />

New niche service providers will<br />

emergeandfightformarketshare.All<br />

ofthiscouldleadtoevenmoreregulatorydebatesovercompetition,butin<br />

theend,itwillbenefittheenduser.<br />

Asthemarketadaptstothenewcommunication<br />

scenario, innovation and<br />

competitionwillthrive.IPwillbethe<br />

universal language and Ethernet will<br />

becometheuniversalmicrophonefor<br />

both the residential and enterprise<br />

users. Although there are great challenges<br />

ahead for incumbent service<br />

providers and equipment vendors<br />

alike, the industry and the users will<br />

benefitfromIP.<br />

16


NewportNetworks-NewportNetworks-NewportNetworks-NewportNetworks<br />

SESSION CONTROL IN NEXT<br />

GENERATION NETWORKS<br />

Next Generation Networks are evolving to support<br />

multiple services over multiple access technologies.<br />

This means delivering a uniform service<br />

regardless of the type of access used.<br />

Always reachable, anywhere, any device.<br />

Newport Network 1460 delivers the essential proxy<br />

and gateway functions required in wireline and wireless,<br />

IMS-based, Next Generation Networks. The<br />

1460 can be deployed either as a stand-alone session<br />

border controller or as physically separate signalling<br />

and media functions, providing Proxy-Call Session<br />

Control Function (P-CSCF) and Border Gateway<br />

Function (BGF) components respectively.<br />

This intrinsic flexibility allows carriers to plan the<br />

growth of their infrastructure practically and economically,<br />

so that new services can be introduced on<br />

minimal infrastructure by co-hosting functions such<br />

as P-CSCF and Interconnect-Border Control Function<br />

(I-BCF) on a single node. As service traffic grows, the<br />

functions can be distributed across multiple devices<br />

providing efficient re-use of hardware and software.<br />

The 1460 has been designed to meet tier-1 carrier<br />

requirements for resilience and reliability. A single<br />

1460 chassis exceeds ‘five 9s’ availability and all<br />

sub-systems can be replicated so that there is no single<br />

point of failure. Distribution of functions across<br />

multiple chassis further enhances overall system<br />

availability.<br />

In addition to existing voice services, these new networks<br />

will support conversational video, streaming<br />

video, Instant Messaging and even broadcast TV.<br />

They will also need to meet regulatory requirements<br />

such as Lawful Intercept (LI) and Emergency Call<br />

Handling (ECH). The 1460 provides the necessary<br />

support for LI and ECH from day one.<br />

The 1460 SignallingProxy supports the following<br />

functions:<br />

P-CSCF<br />

The first point of contact, proxying the services of a<br />

remote server and providing ECH and LI capabilities<br />

close to the call origination. If required, it can enable<br />

the secure traversal of CPE-based NAT and firewall<br />

devices, and implement topology hiding to prevent<br />

service theft and security breaches. The policing of<br />

signalling messages can also help protect downstream<br />

devices from IP or SIP signalling attacks.<br />

I-BCF<br />

Where required the 1460 can perform the Border<br />

Control Function, policing signalling, performing<br />

topology hiding and generating call details records at<br />

the interconnection point. It can also interface to<br />

one or more Border Gateways to implement QoS policies,<br />

manage media policing and deliver firewalling<br />

functions.<br />

THIG<br />

The Topology Hiding function can be implemented<br />

with any of the above functions, thus providing flexibility<br />

in designing the IMS core.<br />

The 1460 MediaProxy supports the following functions:<br />

I-BGF/C-BGF<br />

The 1460 MediaProxy protects and secures the media<br />

flows. Acting under the control of an I-BCF or CSCF,<br />

the MediaProxy opens and closes media pinholes,<br />

polices the media flows and implements QoS marking,<br />

ensuring that services requested in the signalling<br />

match the delivered media.<br />

Newport Networks 1460 meets the evolving needs of<br />

carriers through a flexible and resilient carrier class<br />

platform capable of delivering key IMS functionality<br />

today. As your NGN grows, the 1460 is designed to<br />

grow with you, delivering the foundation of future<br />

services.<br />

David Gladwin<br />

Marketing Manager at Newport Networks<br />

For more information, please visit:<br />

http://www.newport-networks.com<br />

PromotionalFeature


IP communications assurance<br />

Getting ready for IP communications assurance<br />

by William Burns, President, Service Assurance-Broadband, Spirent Communications<br />

WiththewidespreadrolloutofIPcommunications,operatorsmustfacetheincreased<br />

complexityofmanagingIP-basedservices.Theseservices,whetherresidentialtripleplay<br />

orbusinesssystems,presentclearoperationalandtechnicalchallenges.Today’stechnician,andtherearefewwhoarequalified,faceschallengesthatdwarfthoseofyesterday.<br />

Fortunately,softwaresolutionsandnetworkappliancesareavailabletoautomatetheIP<br />

troubleshooting process. To provide high-quality competitive services, operators need<br />

systemsthatletlowertiertechniciansquicklyresolveIPplatformproblems.<br />

The IP communications business is<br />

bornofcompetition.Withtraditional<br />

voice subscriptions lost to wireless<br />

andVoIPprovidersandtheDSLver-<br />

suscablebattleraging,traditionaltel-<br />

WilliamBurnsisthePresidentofServiceAssurance-Broadband,SpirentCommunications.Heisresponsiblefortheglobalisation,growthandstrategicdirectionoftheServiceAssurancedivisionofSpirent<br />

Communications.BeforejoiningSpirent,hewastheSeniorVicePresidentofGlobalMarketing,Strategy<br />

andBusinessDevelopmentofTellabs,whereheheldseveralseniorsalesmanagementandsalesengineeringpositions.<br />

Willian Burns holds a bachelor’s degree in Business Administration, with a specialisation in<br />

Engineering, from College Misericordia, Pennsylvania, and an MBA from Temple University,<br />

Pennsylvania.<br />

Ready or not, IP-based communicationsarehere,promisingnewservice<br />

rollouts, revenue opportunities and<br />

operational efficiencies. The dawn of<br />

IP communications was inevitable.<br />

However, what may be a surprise is<br />

the increased complexity associated<br />

with managing IP-based services.<br />

Theseservices,whetherthenewrage<br />

of residential triple play or powerful<br />

new business services, present some<br />

clear and daunting challenges, many<br />

of which will rest squarely on the<br />

shouldersofoperationstechnicians.<br />

Challenges such as reducing costs to<br />

deliver services, managing competitive<br />

service offerings and scaling to<br />

meet growth, all trickle down to an<br />

operation’sabilitytodeliverandmanage<br />

services that meet subscriber<br />

expectations.<br />

It’sacomplexIPworld<br />

Today’s technician faces technical<br />

challengesthatdwarfthoseofyesterday.<br />

New IP services are more complex<br />

and difficult to troubleshoot.<br />

Techniciansmustbeabletolocateand<br />

verifyIPservicetroubles,rapidlydiagnoseproblemsandformulatearesolution.<br />

This is not unlike yesterday’s<br />

technician,butadditionalexpertiseis<br />

required to address multiple services<br />

with variable service level requirements,<br />

multiple OSI (open systems<br />

interconnection) layers and a host of<br />

new routing and switch technologies.<br />

These requirements change the picturesignificantly.<br />

Theskillleveloftheoperationsgroups<br />

of a few years ago simply does not<br />

measureuptotoday’sIPservicemanagementrequirements.Theincreased<br />

complexityandsubsequentimpacton<br />

operations poses significant risks to<br />

theoperationalexpensesavingsservice<br />

providers are counting on.<br />

Operationsmusthavetechniciansthat<br />

can address not only voice problems,<br />

butvideoanddataissuesaswell,and<br />

the skills to troubleshoot these problemsacrossmultipleOSIlayers.<br />

For example, when a customer calls<br />

with a VoIP problem, the technician<br />

must ask several questions. Is the<br />

problemaLayer7applicationissue,a<br />

problemofrouteflappingatLayer3,<br />

an Ethernet Layer 2 issue or a DSL<br />

physical Layer problem If the VoIP<br />

call is destined for a PSTN (analog)<br />

phone, they must determine whether<br />

thesourceofthetroubleisintheIPor<br />

PSTNportionofthenetwork.<br />

How many of your technicians have<br />

fiveyearsexperiencesupportingVoIP<br />

networksandunderstandingthenew<br />

signalling protocols or network elements<br />

required to deliver video over<br />

IPTheservicesthemselvesarenewto<br />

technicians.Ifyouthrowinthetransient<br />

nature of IP troubles, and the<br />

continuousneedforserviceproviders<br />

to expand the subscriber base, you<br />

quickly realise that you cannot hire,<br />

train and deploy enough technicians<br />

tomeetthedemand.<br />

19


IP communications assurance<br />

cosarelosingrevenuestostiffcompetition.Theresidentialbroadbandmarket<br />

continues to be a hotly contested<br />

segment, spawning bundled services<br />

to attract high-value customers. The<br />

competitive advantages of bundled<br />

servicesarethereducedprobabilityof<br />

subscribers’ changing service<br />

providersandtheopportunitytoadd<br />

higher-value, revenue-generating<br />

services.Thismeanshittingtheissues<br />

ofcomplexityhead-on.<br />

Deliveringbest-of-breedservicesfrom<br />

the outset improves the chances of<br />

keeping customers happy, building a<br />

platform to attract new customers,<br />

and of maintaining a stable environment<br />

to offer tomorrow’s revenueexpanding<br />

solutions. However, this<br />

success can only be achieved by<br />

addressing the complex, new operational<br />

requirements associated with<br />

IP.<br />

Operationalchanges<br />

Service providers need to recognise<br />

the critical role that service management<br />

operational support systems<br />

(OSSs) play in supporting operations<br />

teams.<br />

In the past, OSSs were typically procuredanddeployedasanafterthought<br />

to network or service deployment.<br />

Budget was typically assigned to roll<br />

outthenetworkandturnuptheservicesasquicklyaspossibleinorderto<br />

startgeneratingrevenue.Thesystems<br />

thatoperationsneededtomanagethe<br />

network were often addressed after<br />

the services had been deployed and<br />

customercomplaintshadbegunstackingup.<br />

Growingthebusinessahead<br />

ofstaffingrequirements<br />

Competition-consciousserviceproviders<br />

recognise the need to invest in service<br />

management systems as part of the<br />

network and service rollout plan,<br />

ensuring that these systems are in<br />

place before a service is provided to<br />

thecustomer.Inacompetitiveworld,<br />

service providers realise they will get<br />

onlyoneopportunitytogetitright.It<br />

isvitalthatprovidersmaketestingof<br />

servicesacriticalpartoftheactivation<br />

process, and testing and diagnostics<br />

an integral part of the ongoing troubleshootingprocess.<br />

Thetechnicianassignedtodaytomanuallyaddressacustomer’sVoIPquality<br />

complaint is a high-level, welltrainedresourceandanexpensiveone<br />

"In order to achieve<br />

their Opex reduction<br />

objectives, service<br />

providers must attract,<br />

keep and grow their<br />

tier one workforce."<br />

aswell.Yetwithouttheproperservice<br />

management tools, the resolution of<br />

thetroubleisstilllefttochance.The<br />

technician may find the trouble right<br />

away,buttheeffortmostlikelywillbe<br />

a long process that will frustrate the<br />

customer, consume additional<br />

resources and possibly jeopardise<br />

futurerevenue.<br />

The operational goals of the typical<br />

serviceprovideraretoreducethecost<br />

of service delivery, offer additional<br />

services to increase overall revenue,<br />

whilemeetingtheexpectationsofthe<br />

subscriber.<br />

To achieve these goals, service<br />

providersmustreversealegacytrend,<br />

the costly policy of hiring more IP<br />

experts than tier one technicians. In<br />

fact,thegoalwouldbetoempowertier<br />

one call centre technicians with the<br />

expertise to diagnose and resolve the<br />

majorityofproblemsonthefirstcall.<br />

This would result in lower operating<br />

expense, or Opex, and better service<br />

metricssuchasmeantimetorepair.<br />

The bottom line is that in order to<br />

achieve their Opex reduction objectives,<br />

service providers must attract,<br />

keep and grow their tier one workforce.<br />

Theincreasedtechnicalcomplexityof<br />

IP networks, the subsequent operational<br />

impact and aggressive growth<br />

projections, make it clear that with<br />

current methods, operations will fall<br />

shortofIPexpertise.ThatiswhereIP<br />

servicemanagementcanhelp,byproviding<br />

tools that empower tier one<br />

technicians to become IP experts<br />

whilegrowingthebusinessandwithouthinderingoperationalcapabilities.<br />

Whatisitgoingtotake<br />

Service providers need to change the<br />

waytheyapproachoperationssupport<br />

systems.GettingaheadoftheIPgame<br />

"Service providers need<br />

to change the way they<br />

approach operations<br />

support systems."<br />

means deploying test and diagnostic<br />

solutionsthatprovideoperationswith<br />

a competitive advantage – an advantage<br />

that provides the necessary<br />

expertisetoaddressthenewIPcomplexity,thatenablesserviceproviders<br />

to benefit from operational efficiencies<br />

and that comes from delivering<br />

high-qualityIPservicesthatmeetthe<br />

subscriber’s expectations from day<br />

one.<br />

Fortunately,thistimearoundtechnology<br />

is keeping up with the need.<br />

SoftwaresolutionsandnetworkappliancesareavailabletoautomatetheIP<br />

troubleshooting process. In fact,<br />

today’s test and diagnostic solutions<br />

can effectively increase the expertise<br />

ofanyoperationscentre.<br />

These solutions can emulate specific<br />

IPservices,andgivethetechniciana<br />

snapshotintothesubscriber’sviewof<br />

servicequality.<br />

Armed with advanced test and diagnosticdata,technicianscanefficiently<br />

address the greater complexity, from<br />

multipleservicestomultiplelayers.In<br />

the not so distant future, IP services<br />

willbeturnedupcompletelyverified,<br />

andonceoperational,diagnosedbyan<br />

automatedexpertanalysissystems.<br />

Noturningback<br />

There is no turning back for service<br />

providers.Servicedeliveryoveraconverged<br />

IP network is upon us.<br />

Nevertheless, to reap the benefits of<br />

rapidservicedeployment,competitive<br />

service bundles, to realise Opex savingsandmeettheneedsofdemanding<br />

subscribers, service providers must<br />

changetheprioritytheygivetoservice<br />

managementOSSplanning.<br />

Diagnostic tools that enable service<br />

turn-up, verification, rapid trouble<br />

managementandautomationcapabilitiesneedtobepartoftheimplementationstrategy.<br />

Operations need the tools to enable<br />

lower-cost tier one technicians to<br />

troubleshootasquicklyandaswellas<br />

high-pricedtiertwoandtierthreeIP<br />

experts. It is the only way to achieve<br />

therevenuegrowthandOpexsavings<br />

service providers are counting upon<br />

andthatshareholdersdemand.<br />

20


Broadband<br />

The broadband revolution: power to the people<br />

by Rik Missault, Vice President Marketing and Communications, Fixed Solutions Division, Alcatel<br />

Digital technology is transforming broadcast TV, music retailing and online gaming,<br />

transferringpowerfrombroadcasterstoconsumers.Traditionally,cablecompaniesprovidedvideoandphonecompanieshandledvoice.Usingbroadbanddigitaltechnology,<br />

bothnowoffervoice,dataandvideoortripleplay.Tripleplaycancreatenewviewer<br />

experiences by combining content, communication and community. Participation TV<br />

letsviewersactivelyparticipateintelevisionshowsandformTVviewingcommunities,<br />

sotheycantalk,online,aboutshows,astheyhappen,withfriends.<br />

RikMissaultjoinedAlcatelin1992.HehasbeeninvolvedintheworldwidedevelopmentofAlcatel'sDSL<br />

businesssince1996andcurrentlyleadstheMarketingandCommunicationsteamsatAlcatel'sFixed<br />

SolutionsDivision.<br />

RikMissaultearnedhisdegreeinElectronicsEngineeringfromtheUniversityofLeuveninBelgiumand<br />

completedanExecutiveMastersinBusinessAdministrationattheVlerickSchoolforManagementin<br />

Gent,Belgium.<br />

Makingthetripleplay<br />

Forcablecompanies,videocamefirst.<br />

For phone companies, it was voice.<br />

Both have already extended into<br />

broadbandandbotharealsostarting<br />

to offer what used to be their rivals’<br />

exclusive offering. This move to offer<br />

voice,dataandvideohasspawnedthe<br />

useoftheterm‘tripleplay’.<br />

We are on the cusp of a home informationandentertainmentrevolution.<br />

Digital technology is transforming<br />

several existing market segments,<br />

including broadcast TV, music retailingandonlinegaming,tonameafew.<br />

These changes are accompanied by<br />

parallelgrowthinconsumerexpectations<br />

regarding how to engage with<br />

information and entertainment. The<br />

biggest change, resulting from this<br />

shift,isthetransferofpowerfromthe<br />

broadcasters and schedulers to the<br />

consumers. It is now commonly<br />

understoodthatconsumerswantcontrolofthecontentandoftheschedule.<br />

Currently,thethreetripleplaycomponentsarelargelyofferedindependent-<br />

ly. Users, however, are seeking an<br />

integratedexperience.So,newservicesarebeingdeveloped,resultingfrom<br />

the combination, or convergence, of<br />

different technologies and terminals.<br />

Forexample,callerIDonyourTVset,<br />

forastart.<br />

The successful deployment of triple<br />

play services is creating an exciting<br />

laboratoryforthedesignofinnovative<br />

applications.Thechallengeistobuild<br />

acompellingnewuserexperience.<br />

TheTriplePlayuser<br />

experience:integrateand<br />

differentiate<br />

Fortheuser,theessentialelementsof<br />

triple play are content, communicationandcommunity(Figure1).<br />

ContentcoversbroadcastTVandondemandmoviesandpersonalcontent,<br />

like holiday photos and birthday<br />

videos. Communication <strong>include</strong>s verbal<br />

and non-verbal communication.<br />

Fromvoiceandvideototextandpicturemessaging.Becausepeoplelivein<br />

asocialcontext,communitysupportis<br />

a key component of the converged<br />

triple play story. People talk about<br />

media with their friends and share<br />

pictureswiththeirfamilies.Acreative<br />

blendofcontent,communicationand<br />

communityisthebestguaranteeofan<br />

appealingbroadbandexperience.<br />

Puttingtheviewerinthe<br />

driver’sseat:participation<br />

TV<br />

A growing phenomenon, thanks in<br />

parttothepopularityofrealityTV,is<br />

participationTV.<br />

ParticipationTVletsviewerstakepart<br />

in games shows, song contests, talk<br />

shows and human interest news programmesfromtheirhomes.<br />

Participation TV, or Response TV,<br />

allowsviewerstocommunicateviathe<br />

broadcast and actively participate in<br />

television shows – e.g., dial a phone<br />

number or send a text message from<br />

theirmobilephonetovoteforacontestantorforanoption.Participation<br />

TV, usually associated with contests,<br />

quizzesandtalentshows,canbefound<br />

22


Broadband<br />

throughout Western Europe, India<br />

andNorthAmerica.<br />

Examples<strong>include</strong>audienceparticipation<br />

programmes where by calling a<br />

number,visitingawebsiteorsending<br />

an SMS viewers can vote, provide<br />

feedback or purchase products and<br />

servicesorpurchaseproductsfeatured<br />

ontheshow.Theseactivitiesincrease<br />

thequalityoftheviewers’experience<br />

and drive on-air content, putting the<br />

viewerinthedriver’sseat.<br />

Communitytelevision:where<br />

communicationmeets<br />

entertainment<br />

Most interactive TV services, today,<br />

focusontheinteractionbetweenviewer<br />

and broadcaster through voting,<br />

betting and background information<br />

retrieval.Inthefuture,thisinteraction<br />

willincrease,transformingtraditional<br />

TVviewing.<br />

Technology can create a rich social<br />

experience by introducing communities<br />

into TV or video viewing, essentially<br />

a room-by-room, house-byhouse<br />

activity. It’s like talking about<br />

programmes,notthenextdayaround<br />

theofficewatercooler,butliveasthey<br />

happen.<br />

Whenwatchingafootballmatchyou<br />

can check what your friends are<br />

watchingandsendthemaninvitation<br />

to join you. An avatar, unique onscreen<br />

symbols selected by users to<br />

representthemselves,isdisplayedfor<br />

each member of your group that is<br />

online,soyoucansendmessagesback<br />

andforth.Youcanalsotalkormaintain<br />

video communications using<br />

yourwebcamera,whichisdisplayed<br />

asanoverlay,likepicture-in-picture.<br />

This concept, called community TV,<br />

enablesuserstowatchtheirfavourite<br />

programmes with friends and family,<br />

eveniftheyliveindifferentcities.<br />

Usability research is important when<br />

designing this sort of application. In<br />

the case of community TV, focus<br />

groups and user tests indicate that<br />

many users of chat applications are<br />

already familiar with the concept of<br />

onlinecommunities.Whencombined<br />

with television, online communities<br />

becomeverycompelling.<br />

Personalbroadcasting<br />

Many video on demand and IPTV<br />

deployments only consider major<br />

moviesandbroadcastTVchannelsas<br />

content for which people will pay. In<br />

reality, Hollywood is only part of the<br />

available video content. Many other<br />

types of content appeal to small and<br />

medium-sized‘affinitygroups’including:<br />

- Local issues (e.g., council meetings<br />

andcommunityevents);<br />

-Localproductinformation(e.g.,new<br />

fashion collections and neighbourhoodstoreopenings);<br />

- Community clubs (e.g., local amateurtheatreassociations);<br />

-Homemoviesandphotos.<br />

The personal content trend is driven<br />

bythewidespreaduseofdigitalphotographandvideocamerasthatmakeit<br />

easy to share personal multimedia<br />

contentwithfamilyandfriendsinan<br />

interactive TV environment and, in a<br />

sense,createtheirownTVchannel.<br />

Figure 1: For the user, the essencial elements of<br />

triple play are content, communication and community.<br />

An affinity group is constructed of<br />

individualswithapassionforaspecificprogrammeormovie.Thissegment<br />

would be interested in a video database<br />

service that logged and tracked<br />

programmeepisodesandscenes,taggingthembycharacterandplotline.<br />

This database could be used to cut<br />

scenes together, link episodes, dive<br />

intoassociatedmeta-data,shareinformation<br />

with like-minded individuals<br />

andgroups.<br />

on a PC screen, put them on TV and<br />

theyfeelthateverybodyiswatching.<br />

Examplesabound<br />

The sharing of photos and home<br />

moviescreates‘micro-celebrities’that<br />

gettheirfacesonTVforafewseconds.<br />

Many TV stations now display onscreenmessagestransmittedbyviewersviaSMS,becausepeoplelikeseeingtheirnameonTV,evenifitisjust<br />

forafewseconds.Althoughmostpeopledon’tgetexcitedseeingthemselves<br />

Personalisationcanbetakenevenfurther,<br />

with users assigning ratings to<br />

content, recommending programmes<br />

and subscribing to other community<br />

channels.<br />

The sharing of personal files has<br />

another benefit since the files are<br />

stored on a network drive, users do<br />

notcluttertheirpersonalharddrives<br />

or worry about backups. There are<br />

also many other voice/broadband<br />

services.Youcanshareaphotoalbum<br />

online and have an online slideshow<br />

together with friends. You can send<br />

videos and photos to mobile phone<br />

users. Recommendations and notificationsofnewcontentcanalsobesent<br />

tomobilephones.<br />

Theseexamples,anddozensofothers,<br />

represent real, converged triple play<br />

applicationsinwhichthevideo,voice<br />

and data components are combined<br />

to deliver a sum that is greater than<br />

the individual parts. Unlike existing<br />

triple play deployments where<br />

1+1+1=3, future triple play offerings<br />

will result in a different calculation:<br />

1+1+1=7. Call it the ‘new maths’ of<br />

tripleplay.<br />

Today,tripleplayservicesareproving<br />

to have considerable customer<br />

appeal. Current triple play services<br />

are the first chapter in the convergence<br />

story. To maintain their competitive<br />

edge, service providers look<br />

attoday’stripleplaydeploymentsasa<br />

laboratory where voice, data and<br />

videocanbecreativelycombinedand<br />

integratedintocompellinguserexperiences.<br />

The fusion of content and communication<br />

is the second chapter of the<br />

convergencestory.Fromauser’sperspective,<br />

community services act as<br />

theenablingframeworkforthefuture<br />

evolutionoftheinteractiveTVexperience,<br />

including text messaging, video<br />

communication and personal content<br />

distribution. Community and participationTVareuniqueexamplesofthe<br />

power of merging triple play components<br />

and point the way for further<br />

exploration.<br />

Thelogicalnextstepistheemergence<br />

ofnewTVformatsthatmakefulluse<br />

ofthesenewcommunicationmethods<br />

in a broadcast TV environment. This<br />

will constitute a real fusion of the<br />

tripleplaycomponents.<br />

23


Broadband<br />

High-performance broadband – thinking beyond the pipe<br />

by Peter Linder, Technical Director Wireline Networks, Business Unit Systems, Ericsson<br />

BroadbandmeansmoretooperatorsthanfasterInternetaccess.Itis,intruth,anessentialingredientintheirstrategiesforlong-termsurvival.Highperformancebroadbandis<br />

notonlytodelivernewrevenuegeneratingservicessuchastripleplayvoice,Internetand<br />

TVandadvancedinteractiveandpersonalisedservices,buttoprovidelowercost,higherquality,competitive,IPtelephonyservices.Itwillalsoprovidesystemstotietogether<br />

the many residential digital devices proliferating in kitchens, living rooms and bedrooms.<br />

PeterLinderisTechnicalDirectorforWirelineNetworksatEricsson.HisrolecoversBroadbandAccess,<br />

IPSoftswitchingforTelephonyandMultimediaapplicationsaswellastheinstalledbaseofAXE.Before<br />

hiscurrentposition,hewasTechnicalDirectorforBroadbandaccessandheldseveralmanagerialpositions<br />

in the broadband access area covering products such as DSL, LMDS, HFC and fibre Ethernet<br />

access. He also served as Vice President of Marketing for the Ethernet in the First Mile Alliance. Mr<br />

LinderisafrequentspeakeratvariousBroadbandindustryevents,withinternationalappearancesat<br />

the Broadband <strong>World</strong> Forum (Seoul & Venice), Voice-on-the-Net (Boston), xDSL Summit (Nice), 21<br />

CenturyCommunications<strong>World</strong>Forum(London),VONSpring(SanJose),VONEurope(Stockholm),<br />

Broadband<strong>World</strong>ForumAsia(Yokohama)andSuperComm(Chicago).<br />

PeterLinderwasgraduatedfromChalmersInstituteofTechnologyinGothenburg,Sweden,in1991with<br />

MScinElectricalEngineering,aswellasanMBAinInternationalBusinessManagement.<br />

One of the least understood developmentsintoday’stelecomworldisthe<br />

transformation of broadband beyond<br />

Internet connectivity. This may seem<br />

curious,sinceeverybodywantsitand<br />

weseeanenormoussurgeindemand<br />

fromhouseholdsandoffices.<br />

WeneedtobroadentheInternetparadigm,becauseprovidinghigh-capacityconnectionswillnotbeenough.In<br />

faceofthechallengesaheadforwireline<br />

operators, it is extremely importanttostartthinkingofbroadbandnot<br />

justintermsof‘moremeansbetter’.<br />

Thewirelinebusinessisnowentering<br />

a new phase where it is performance<br />

thatcounts.Tomorrow’sbroadbandis<br />

notjustforwebsurfingandIPtransport.Operatorsseehigh-performance<br />

broadbandasawaytocontinuetobe<br />

competitive.<br />

What is high-performance broadbandItisaboutaddingvaluetograb<br />

astakeinthenewbusinessopportunitiesthatflowfromthedevelopmentof<br />

media and communication services,<br />

instead of getting stuck in the bit<br />

transporttrap.<br />

Take household water as an analogy.<br />

Ordinarytapwaterisgoodfortakinga<br />

shower, cooking or drinking, but if<br />

processed into sparkling water, soft<br />

drinksandsuchitcanbelabelledand<br />

marketed at much higher prices.<br />

However,itcannolongerbedistributedthroughpipes.<br />

Today’s basic high-capacity bit pipe<br />

does not provide users with much<br />

addedvalue,but,unlikewater,itcan<br />

be upgraded to distribute the new,<br />

advanced, services that require<br />

greater performance and capability<br />

fromthebroadbandconnection.This<br />

gives today’s operators many new<br />

opportunitiessincehigh-performance<br />

broadband networks conserve the<br />

uniquecharacteristicsofthenewservicesandcandeliverthemtotheright<br />

devices.<br />

Besidesspeed,thenewnetworksmust<br />

be able to control bit-error rates,<br />

latencyandlatencyvariations,impor-<br />

tantforhighqualitygamingandreal-<br />

time applications such as IPTV and<br />

must deliver the reliable and secure<br />

connections,vitalfortripleplayvoice,<br />

Internet and TV over the same connection.Thisisafarcryfromtoday’s<br />

‘besteffort’Internetconnections.<br />

Increased capacity is important, but<br />

without a corresponding increase in<br />

quality of service, it cannot be sold.<br />

Provisioningisanimportantcapabilityofhigh-performancebroadbandas<br />

istheabilitytokeeptrackofindividual<br />

usage and charges for end userdriven,dynamicallychanging,portfolios<br />

of services. These will add new<br />

dimensions to the operators’ interactionwithconsumers.<br />

So, if not web-surfing, what services<br />

willdrivewirelinerevenuesThereis<br />

no universal recommendation, no<br />

uniquesilverbullet.<br />

Fromaglobalperspective,it’sobvious<br />

howmuchconsumertasteandpreferencesdifferbetweenmarkets,cultures<br />

andagegroups.<br />

25


Broadband<br />

"Today’s basic highcapacity<br />

bit pipe does<br />

not provide users with<br />

much added value, but,<br />

unlike water, it can be<br />

upgraded to distribute<br />

the new, advanced,<br />

services that require<br />

greater performance<br />

and capability from the<br />

broadband connection."<br />

Tripleplayisjustdippingitstoeinthe<br />

water,stilltryingtofindtherightmix<br />

of services to bundle. Operators are<br />

bundling existing services to retain<br />

theircustomers,becauseabroadband<br />

customer lost now will be virtually<br />

impossibletowinbacklater.<br />

The challenge is to ensure that any<br />

service, including tomorrow’s, can be<br />

delivered to anyone and bundled to<br />

suitawiderangeofconsumerpreferences.Itisnottheservicesthattrigger<br />

broadbanddevelopment.<br />

It is the growing number of digital<br />

devices in our households, and the<br />

synergiesthatwillincreasetheirvalue<br />

whentheyareconnected.Justlookat<br />

game consoles and iPods spur completelynewwaysofusingnetworks.<br />

Operators must provide home gatewayspreparedtohandletheexpanded<br />

services. WLAN and Ethernet are<br />

standardised,broadlyaccepted,interfacessuitableforahomenetworkand<br />

can serve as a gateway to the public<br />

network, the natural host of security,<br />

andotherfunctionsthatcanbemanagedbytheaccessoperator.<br />

What does an intelligent position for<br />

growthlooklikeAtthisstageofmarket<br />

development, there are three distinctandstrategicinitiativesforwirelineoperatorstoconsider:<br />

First<br />

ShifttoIP/Ethernetbroadbandaccess<br />

architectures. New IP/Ethernet-centricaccessnodesaredesignedtoprovide<br />

cost efficient capacity and capabilities.ThetransitiontoIP/Ethernetbasedaccessstartedwiththeadoption<br />

of IP-DSLAMs (Digital Subscriber<br />

Line Access Multiplexer) at central<br />

officesandwithFTT-buildingdeployments<br />

for multi-dwelling buildings.<br />

This transition is now affecting other<br />

node segments, for example Multi-<br />

Service Access Nodes, Fibre-to-the-<br />

Neighbourhood or Curb and Fixed<br />

WirelessBroadbandapplications.<br />

Second<br />

Use IP to modernise telephony. It is<br />

quite a challenge to migrate to IP<br />

whileretainingfullcompatibilitywith<br />

existing services and terminals and<br />

withoutlosinganyofthefeaturesand<br />

qualities of circuit-switched telephony.<br />

A case in point is British Telecom’s<br />

21st Century Network, the first<br />

attempt to transform a national<br />

telephonynetworktoIP.Theproject’s<br />

objective is to lower basic telephony<br />

operational costs without any noticeable<br />

difference to customers.<br />

Transforming telephony services to<br />

Servicedelivery<br />

The ‘everything must be free’ scare,<br />

anotherproductoftheInternetparadigm,<br />

is limiting what we deliver.<br />

Consumers will pay if the value is<br />

there.<br />

DHLdeliverspackagesdespitecheaperalternativesbecausepeoplepayfor<br />

performanceandsecurity.Itispossible<br />

to move from a free to fee paradigm<br />

for service delivery and<br />

advancedbroadbandconnectionswill<br />

play a key role creating the required<br />

value.<br />

Digitaldevicesaboundinthemodern<br />

home. Automated appliances in the<br />

kitchen,digitalwashingmachines,climate<br />

control and security systems<br />

functionalongsidetraditionalphones,<br />

TVs, PCs, cameras, video equipment<br />

andthelike.<br />

Ifthesecouldbesimplyconnectedto<br />

the home network, operators could<br />

launchnewservicesforsuchdevices,<br />

andmanyothersnotyetinvented.<br />

Figure 1: Operators see high-performance broadband as a way to stay competitive.<br />

26


Broadband<br />

"Today’s basic highcapacity<br />

bit pipe does<br />

not provide users with<br />

much added value, but,<br />

unlike water, it can be<br />

upgraded to distribute<br />

the new, advanced,<br />

services that require<br />

greater performance<br />

and capability from the<br />

broadband connection."<br />

Tripleplayisjustdippingitstoeinthe<br />

water,stilltryingtofindtherightmix<br />

of services to bundle. Operators are<br />

bundling existing services to retain<br />

theircustomers,becauseabroadband<br />

customer lost now will be virtually<br />

impossibletowinbacklater.<br />

The challenge is to ensure that any<br />

service, including tomorrow’s, can be<br />

delivered to anyone and bundled to<br />

suitawiderangeofconsumerpreferences.Itisnottheservicesthattrigger<br />

broadbanddevelopment.<br />

It is the growing number of digital<br />

devices in our households, and the<br />

synergiesthatwillincreasetheirvalue<br />

whentheyareconnected.Justlookat<br />

game consoles and iPods spur completelynewwaysofusingnetworks.<br />

Operators must provide home gatewayspreparedtohandletheexpanded<br />

services. WLAN and Ethernet are<br />

standardised,broadlyaccepted,interfacessuitableforahomenetworkand<br />

can serve as a gateway to the public<br />

network, the natural host of security,<br />

andotherfunctionsthatcanbemanagedbytheaccessoperator.<br />

What does an intelligent position for<br />

growthlooklikeAtthisstageofmarket<br />

development, there are three distinctandstrategicinitiativesforwirelineoperatorstoconsider:<br />

First<br />

ShifttoIP/Ethernetbroadbandaccess<br />

architectures. New IP/Ethernet-centricaccessnodesaredesignedtoprovide<br />

cost efficient capacity and capabilities.ThetransitiontoIP/Ethernetbasedaccessstartedwiththeadoption<br />

of IP-DSLAMs (Digital Subscriber<br />

Line Access Multiplexer) at central<br />

officesandwithFTT-buildingdeployments<br />

for multi-dwelling buildings.<br />

This transition is now affecting other<br />

node segments, for example Multi-<br />

Service Access Nodes, Fibre-to-the-<br />

Neighbourhood or Curb and Fixed<br />

WirelessBroadbandapplications.<br />

Second<br />

Use IP to modernise telephony. It is<br />

quite a challenge to migrate to IP<br />

whileretainingfullcompatibilitywith<br />

existing services and terminals and<br />

withoutlosinganyofthefeaturesand<br />

qualities of circuit-switched telephony.<br />

A case in point is British Telecom’s<br />

21st Century Network, the first<br />

attempt to transform a national<br />

telephonynetworktoIP.Theproject’s<br />

objective is to lower basic telephony<br />

operational costs without any noticeable<br />

difference to customers.<br />

Transforming telephony services to<br />

Servicedelivery<br />

The ‘everything must be free’ scare,<br />

anotherproductoftheInternetparadigm,<br />

is limiting what we deliver.<br />

Consumers will pay if the value is<br />

there.<br />

DHLdeliverspackagesdespitecheaperalternativesbecausepeoplepayfor<br />

performanceandsecurity.Itispossible<br />

to move from a free to fee paradigm<br />

for service delivery and<br />

advancedbroadbandconnectionswill<br />

play a key role creating the required<br />

value.<br />

Digitaldevicesaboundinthemodern<br />

home. Automated appliances in the<br />

kitchen,digitalwashingmachines,climate<br />

control and security systems<br />

functionalongsidetraditionalphones,<br />

TVs, PCs, cameras, video equipment<br />

andthelike.<br />

Ifthesecouldbesimplyconnectedto<br />

the home network, operators could<br />

launchnewservicesforsuchdevices,<br />

andmanyothersnotyetinvented.<br />

Figure 1: Operators see high-performance broadband as a way to stay competitive.<br />

26


Broadband<br />

You are a decision<br />

maker;<br />

You understand<br />

your business;<br />

Figure 2: Broadband used to be simple, but as the market broadens, operators need a bigger portfolio<br />

of solutions to connect their customers.<br />

IP,alsoreferredtoastelephonyemulation,<br />

is calls for softswitches to<br />

replace the current hardware.<br />

Softswitches connect to existing circuit-switched<br />

access nodes through<br />

mediagatewaysordirectlytoIP-Multi<br />

ServiceAccessNodes.<br />

Third<br />

Lay the foundation for tomorrow’s<br />

communicationservices,byintroduc-<br />

ingIPMulti-MediaSubsystem(IMS)-<br />

based systems and services. IMSbasedservicescanconnecttowhatever<br />

communications device is most<br />

convenienttotheuseratthemoment,<br />

beitaPC,laptop,mobilephoneorTV.<br />

Consumersdonotwanttokeepalist<br />

of different numbers or addresses to<br />

contactsomeone,makingacallshould<br />

besimpleandindependentofthetype<br />

ofcommunicationservicesordevices<br />

used. New communications services<br />

will flexibly, dynamically, change the<br />

communicationformatbetweenvoice,<br />

data,picturesandvideo,duringacall<br />

and,insteadofbeingrestrictedasthey<br />

are today to one type of network or<br />

device, will cut across network and<br />

deviceboundariessothatcommunication<br />

between different device types<br />

canbebecomeareality.<br />

"Broadband used to be<br />

simple, but as the<br />

market broadens,<br />

operators need a bigger<br />

portfolio of solutions to<br />

connect their<br />

customers."<br />

With this in place, the ability to use<br />

converged multimedia communication<br />

opens up a host of new ‘richer<br />

communication’ services including<br />

talking and simultaneously sharing a<br />

picture or image with the person<br />

called.Itcanalsomean‘push-to-talk’,<br />

buddy-lists, presence and availability<br />

as added qualities to your communication.<br />

Another added value growth area is<br />

themedia,TVbeingtheprimeexample.Wecanalsoexpectawiderangeof<br />

newinteractiveandpersonalisedservices.<br />

Broadband used to be simple, but as<br />

themarketbroadens,operatorsneeda<br />

biggerportfolioofsolutionstoconnect<br />

their customers. They need DSL for<br />

short local loops, for small house<br />

areas, fibre for new real estate and<br />

multi-dwellingunits,andwirelessfor<br />

ruralareas.<br />

The implications of the transition<br />

from single service Internet access<br />

over ATM-based architectures to<br />

IP/Ethernet architecture for multiple<br />

serviceshavebecomeevidentoverthe<br />

pasttwoyears.<br />

Equipment suppliers are working<br />

closely with operators to identify the<br />

optimal transition paths to the new<br />

architectures.Noonetodayquestions<br />

thatoperatorsneedtomigratetothe<br />

newarchitectureandthereisagrowing<br />

realisation that a fast transition<br />

willyieldmuchbetterlong-termprofitabilitythanextendingthelifeofthe<br />

oldarchitecture.<br />

Do you<br />

understand how ICT<br />

affect the<br />

markets, the<br />

countries and the<br />

people you serve<br />

Gain insight into<br />

how ICT leaders see<br />

the future.<br />

<strong>Connect</strong>-<strong>World</strong>,<br />

The Decision<br />

Makers’ Forum for<br />

ICT Driven<br />

Development,<br />

brings you the<br />

thoughts and<br />

opinions of<br />

leaders from<br />

around the globe,<br />

their personal<br />

assessment of the<br />

issues that drive<br />

the ICT revolution<br />

and change the<br />

lives of us all.<br />

www.connect-world.com<br />

28


Broadband<br />

You are a decision<br />

maker;<br />

You understand<br />

your business;<br />

Figure 2: Broadband used to be simple, but as the market broadens, operators need a bigger portfolio<br />

of solutions to connect their customers.<br />

IP,alsoreferredtoastelephonyemulation,<br />

is calls for softswitches to<br />

replace the current hardware.<br />

Softswitches connect to existing circuit-switched<br />

access nodes through<br />

mediagatewaysordirectlytoIP-Multi<br />

ServiceAccessNodes.<br />

Third<br />

Lay the foundation for tomorrow’s<br />

communicationservices,byintroduc-<br />

ingIPMulti-MediaSubsystem(IMS)-<br />

based systems and services. IMSbasedservicescanconnecttowhatever<br />

communications device is most<br />

convenienttotheuseratthemoment,<br />

beitaPC,laptop,mobilephoneorTV.<br />

Consumersdonotwanttokeepalist<br />

of different numbers or addresses to<br />

contactsomeone,makingacallshould<br />

besimpleandindependentofthetype<br />

ofcommunicationservicesordevices<br />

used. New communications services<br />

will flexibly, dynamically, change the<br />

communicationformatbetweenvoice,<br />

data,picturesandvideo,duringacall<br />

and,insteadofbeingrestrictedasthey<br />

are today to one type of network or<br />

device, will cut across network and<br />

deviceboundariessothatcommunication<br />

between different device types<br />

canbebecomeareality.<br />

"Broadband used to be<br />

simple, but as the<br />

market broadens,<br />

operators need a bigger<br />

portfolio of solutions to<br />

connect their<br />

customers."<br />

With this in place, the ability to use<br />

converged multimedia communication<br />

opens up a host of new ‘richer<br />

communication’ services including<br />

talking and simultaneously sharing a<br />

picture or image with the person<br />

called.Itcanalsomean‘push-to-talk’,<br />

buddy-lists, presence and availability<br />

as added qualities to your communication.<br />

Another added value growth area is<br />

themedia,TVbeingtheprimeexample.Wecanalsoexpectawiderangeof<br />

newinteractiveandpersonalisedservices.<br />

Broadband used to be simple, but as<br />

themarketbroadens,operatorsneeda<br />

biggerportfolioofsolutionstoconnect<br />

their customers. They need DSL for<br />

short local loops, for small house<br />

areas, fibre for new real estate and<br />

multi-dwellingunits,andwirelessfor<br />

ruralareas.<br />

The implications of the transition<br />

from single service Internet access<br />

over ATM-based architectures to<br />

IP/Ethernet architecture for multiple<br />

serviceshavebecomeevidentoverthe<br />

pasttwoyears.<br />

Equipment suppliers are working<br />

closely with operators to identify the<br />

optimal transition paths to the new<br />

architectures.Noonetodayquestions<br />

thatoperatorsneedtomigratetothe<br />

newarchitectureandthereisagrowing<br />

realisation that a fast transition<br />

willyieldmuchbetterlong-termprofitabilitythanextendingthelifeofthe<br />

oldarchitecture.<br />

Do you<br />

understand how ICT<br />

affect the<br />

markets, the<br />

countries and the<br />

people you serve<br />

Gain insight into<br />

how ICT leaders see<br />

the future.<br />

<strong>Connect</strong>-<strong>World</strong>,<br />

The Decision<br />

Makers’ Forum for<br />

ICT Driven<br />

Development,<br />

brings you the<br />

thoughts and<br />

opinions of<br />

leaders from<br />

around the globe,<br />

their personal<br />

assessment of the<br />

issues that drive<br />

the ICT revolution<br />

and change the<br />

lives of us all.<br />

www.connect-world.com<br />

28


mtcatheer-mtcatheer-mtcatheer-mtcatheer-mtcatheer-mtcatheer<br />

MTC ATHEER:<br />

SUPPORTING THE IRAQI PEOPLE, WINNING THE HEARTS OF CUSTOMERS<br />

The launch of GSM services promises a new era of economic prosperity in Iraq<br />

mtc atheer, part of the MTC Group of companies,<br />

was granted a licence to operate in the southern<br />

region of Iraq, in an agreement signed with the Iraqi<br />

Ministry of Telecommunications on 22nd December<br />

2003. mtc atheer has already established, and operates,<br />

GSM networks in Southern Iraq and in Baghdad.<br />

By end of 2006, mtc atheer’s network will cover all<br />

of Iraq. mtc atheer is proud of the role it is playing<br />

helping Iraq’s society and Iraq’s economy, by developing<br />

technology and building a telecommunications<br />

infrastructure to meet the country’s needs.<br />

mtc atheer met the goals established by the Ministry<br />

of Communications for the first year of operation in<br />

a much shorter time, and provided quality services,<br />

despite great difficulties and security concerns during<br />

the service launch in southern Iraq. Notably, the<br />

license’s ‘force majeure’ condition was not used as a<br />

pretext to postpone or delay the work. Despite the<br />

difficulties, mtc atheer’s determination to achieve<br />

led to the successful incorporation of Baghdad into its<br />

network, now the largest and widest network in Iraq.<br />

services is the focus of our attention. We do not just<br />

want to provide coverage, but to develop and<br />

enhance this coverage to meet and win the hearts of<br />

our customers".<br />

Quality services<br />

mtc atheer focuses on providing reasonably priced<br />

quality services, to support Iraq’s economy and markets.<br />

Today, mtc atheer provides a wide range of prepaid<br />

and postpaid services to meet the demands of<br />

businesses and the needs of individuals.<br />

mtc atheer’s postpaid service targets individual SMEs<br />

and large corporations that need 50 lines or more.<br />

Monthly billing is in US dollars, and postpaid subscription<br />

fees are well below those of other operators,<br />

and special peak and off-peak rates are lower<br />

than those of other operators.<br />

Almost 99 per cent of current customers use the prepaid<br />

service that, in the very near future, will provide<br />

full GPRS network services capable of supporting<br />

1 million subscribers by September 2005.<br />

mtc atheer provides competitively priced roaming<br />

services in most of the countries in the world, using<br />

the slogan Getting Together, so that customers can<br />

stay in contact with their families and businesses, a<br />

much needed service.<br />

mtc atheer offers local and international SMS services,<br />

and emergency call services, direct numbers to<br />

hospitals, police stations, etc., through its hotline<br />

120 open 24 hours a day. mtc atheer is now developing<br />

new services such as voicemail, call barring,<br />

caller ID, conference call services, in addition to the<br />

GPRS and MMS services scheduled for launch by<br />

September 2005.<br />

Mr Ali Al Dahwi, CEO of mtc atheer.<br />

Mobile coverage<br />

The company’s coverage spans more than 2,200 kilometres<br />

in Southern Iraq. The network runs along the<br />

banks of the Tigris and the Euphrates, servicing all<br />

the southern cities, such as Basra, Amara, Diwaniya,<br />

Samawa, Nasiriya, Kout, Al Hilla, Karbala and Najaf,<br />

among others, and all along the major highways and<br />

freeways that connect these cities together. mtc<br />

atheer’s services currently span 13 governorates of<br />

the southern and central regions of Iraq.<br />

mtc atheer now covers all of Baghdad. The official<br />

launch on 27th March 2005 was a momentous day for<br />

the citizens of Baghdad, who welcomed the arrival of<br />

quality mobile telephony in a region with almost no<br />

alternative service.<br />

Commenting on the launch, Mr Ali Al Dahwi, CEO of<br />

mtc atheer, stated: "presenting the most distinctive<br />

Embracing local talent: 100 per cent Iraqi<br />

workforce<br />

Job creation is an important aspect of mtc atheer’s<br />

role in Iraq. "We estimate that as a result of our presence<br />

and ongoing activities some 7000 direct and<br />

indirect work opportunities have been created. This<br />

figure should be close to 10,000 by the end of 2005",<br />

said Ali Al-Dahwi.<br />

mtc atheer now employs more than 600 Iraqis.<br />

Training and skill development have been our number<br />

one priority. The company prides itself on having carried<br />

out its network development using a 100 per<br />

cent Iraqi workforce. This commitment to hiring and<br />

training nationals is a policy that the MTC Group<br />

upholds in all its 18 operations in the Middle East and<br />

Africa.<br />

The MTC Group believes in giving nationals the opportunity<br />

to hold executive positions and take on leadership<br />

roles. Iraqi workers have received training in<br />

Kuwait, Jordan, Finland and USA. The company pro-<br />

PromotionalFeature


mtcatheer-mtcatheer-mtcatheer-mtcatheer-mtcatheer-mtcatheer<br />

motes the exchange of information between the 18<br />

operators in the MTC Group through cross training.<br />

mtc sponsorship of National orchestra.<br />

Corporate social responsibility: supporting the<br />

local community<br />

Apart from its role in developing local talent to support<br />

the rebuilding of Iraq, mtc atheer actively participates<br />

in the community through sponsorship of<br />

local programmes and philanthropic activities.<br />

By the end of 2005, mtc atheer's total contributions<br />

to the community in Iraq, in programmes such as<br />

those below, will reach US$500,000.<br />

1. Humanitarian Aid – financial support has been<br />

given to several humanitarian organisations;<br />

2. Sponsorship of the International Day for Orphans,<br />

in co-ordination with Al Hayat International<br />

Association;<br />

3. Blood Donation – a campaign was launched on 17th<br />

March, 2005 to benefit Iraqi Hospitals with mtc<br />

atheer employees as donors;<br />

4. Food and other supplies were donated to the Iraqi<br />

Society for the Handicapped in Baghdad;<br />

5. The Institute for the Deaf and Mute – sponsorship<br />

of the Deaf and Mute Children’s Day carnival, April<br />

25, 2005;<br />

6. Contributions to a polio vaccination campaign;<br />

7. Sponsorship of the Iraqi National Symphony<br />

Orchestra;<br />

8. Sponsoring the Iraqi Olympic Football Team and<br />

support for the locally acclaimed Football Team, Al<br />

Kadmya, during the football championship;<br />

9. Sponsorship of TV programmes on Al Sharqia TV<br />

Channel, during Ramadan;<br />

10. Ramadan Banquet Tent: "Fast Breaking Banquets"<br />

in several mosques in different areas in Baghdad and<br />

Basra;<br />

11. Education Sponsorship – helping the rebuilding<br />

and renovation of universities in Baghdad, Kufa and<br />

Basra, providing Internet cafés, etc.<br />

Achievements<br />

mtc atheer now has over 600,000 customers from<br />

Southern Iraq to Baghdad. This network will offer<br />

full GPRS services for up to 1 million subscribers by<br />

September 2005.<br />

mtc atheer has already invested more than US$ 280<br />

million, with its expansion into Baghdad and the<br />

northern region, this figure will rise to US$ 430 million<br />

by the end of 2005. mtc atheer’s investments<br />

have benefited trade organisations and industrial<br />

sectors in Iraq, including engineering, sales, and<br />

commerce, the company expects to double these<br />

investments as it expands its coverage.<br />

Key strengths of mtc atheer<br />

- Committed to the redevelopment of Iraq;<br />

- Largest network in Iraq in terms of geography;<br />

- <strong>World</strong>-class telecommunications services;<br />

- Effective use of MTC Group resources;<br />

- 600,000 plus subscribers, expected to reach 1 million<br />

plus by end 2005;<br />

- US$430 million in investment by 2005 yearend;<br />

- 100 per cent Iraqi employees;<br />

- The more than 7,000 indirect jobs already created<br />

will grow to 10,000 by end of 2005;<br />

- A concerted commitment to the community<br />

through grants, aid and sponsorship – US$500,000 by<br />

end of 2005.<br />

About MTC Group<br />

Mobile Telecommunications Company (MTC) was founded in<br />

1983 and is today one of the largest mobile operators in the<br />

Middle East and Africa, offering a plethora of world-class<br />

voice and data services to over 10 million customers spread<br />

across 18 countries – Kuwait, Bahrain, Jordan, Iraq, Lebanon<br />

and 13 countries in sub-Saharan Africa.<br />

Listed on the Kuwait Stock Exchange, MTC’s market capitalization<br />

exceeded US$10 billion as at August 1, 2005.<br />

through acquisitions, partnerships and greenfield opportunities,<br />

MTC aims to achieve in nine years what other companies<br />

have taken more than 27 years to achieve.<br />

In addition to securing the best possible returns for shareholders<br />

in keeping with a high standard of corporate governance,<br />

MTC is defined by a commitment to excellence in<br />

providing world-class mobile services and an ethos of corporate<br />

social responsibility in supporting communities, offering<br />

employment and creating business opportunities wherever it<br />

operates. Please visit http://www.mtc.com.kw<br />

MTC's corporate strategy can simply be summarized as<br />

‘3x3x3’, an ambitious, sustainable expansion strategy that<br />

will see MTC become a leading mobile and lifestyle services<br />

provider on the global stage by the end of the year 2011.<br />

Initiated in year 2002, it is this strategy that will make MTC<br />

a global player in three stages: regional, international and<br />

global, with each stage completed in three years, with an<br />

aim of reaching a subscriber base of 20 million. In essence,<br />

PromotionalFeature


Triple play<br />

IPTV: rethinking broadcasting<br />

by Ed Graczyk, Director of Marketing and Communications, Microsoft TV Division<br />

TelevisionoverIP-basedbroadbandnetworks,IPTV,provideshigh-definitionprogramming,VideoonDemand,DigitalVideoRecording,hundredsoflinearchannels,arich<br />

InteractiveProgrammeGuideandmore.Itfundamentallychangestraditionalbroadcast<br />

TVandletsprovidersdeliveranewgenerationofintegratedservicescalledtripleplay,<br />

combiningvoice,videoandbroadband.IPTV’sefficientuseofbandwidthgivestheconsumer<br />

a near-limitless number of channels and access to a huge library of live, ondemandandtime-shifted,digitalvideorecordedcontent.<br />

EdGraczykisDirectorofMarketingandCommunicationsfortheMicrosoftTVDivisionatMicrosoft<br />

Corporation.Heisresponsibleforcommunications,publicrelations,branding,positioning,advertising,<br />

partner co-marketing and events worldwide for the Microsoft TV family of software products. Mr<br />

GraczykhasheldanumberofmarketingandsalesmanagementpositionsatMicrosoftincludingmarketing<br />

lead for the MSN MoneyCentral personal finance service, marketing lead for MSN<br />

CommunicationsServices,publicrelationsleadfortheWebEssentialsandMSNdivisions,entertainmentmarketingmanagerforMSNandcorporateaccountsalesmanagement.BeforejoiningMicrosoft,<br />

hespentsixyearswithUNISYSCorporation.Heservedinvarioussalesandproductmanagementpositions,withafocusoncustomersinthebanking,securitiesandinsuranceindustries.<br />

MrGraczykfrequentlyspeaksatdigitalTVindustryevents,includingBroadcastAsia,CTAMResearch<br />

Conference,DigitalHollywood,DigiTrendsCampInteractive,KaganInteractiveTVSummit,IFABerlin<br />

andthePBSTechnologyConference.In1994,hereceivedtheCorporateAccountExecutiveoftheYear<br />

AwardatMicrosoft.HeisalsoamemberoftheCable&TelecommunicationsAssociationforMarketing.<br />

EdGraczykhasabachelor’sdegreeinSciencefromtheBostonCollegeSchoolofManagement,wherehe<br />

holdsatriplemajorinmarketing,computerscienceandeconomics.<br />

Recent technological innovations<br />

have enabled the delivery of highqualitytelevisionoverbroadband,IPbased<br />

networks. Called IPTV, this<br />

next-generationTVtechnologyoffers<br />

broadband service providers an<br />

opportunitytofundamentallychange<br />

traditional approaches to broadcast<br />

TV and expand their businesses<br />

throughnewrevenuemodels.<br />

Recent industry events – including<br />

BT’sdecisiontoofferTVoverbroadband<br />

services, SBC’s Project<br />

Lightspeed rollout, Verizon’s<br />

announcement of FiOS TV and V-<br />

CASTservices,cable’saggressiverollout<br />

of triple-play services, and<br />

Microsoft’s recently-announced relationshipwithAlcatel–pointtoaparadigmshiftintheworldofdigitalTV<br />

andcommunicationservicesingeneral.Convergenceis,finally,reallyhappening.<br />

IPTV is one of the best examples of<br />

this convergence. For years, the TV<br />

has been an island of entertainment<br />

andinformationunconnectedtomost<br />

oftheotherdevicesinthehomethat<br />

peoplerelyondaily.IPTVischanging<br />

that by enabling broadband service<br />

providers, including telecommunication<br />

and cable companies, to build<br />

new,connected-entertainment,information<br />

and communication services<br />

andexperiencesfortheircustomers.<br />

IPTV<br />

Caller ID on the TV screen, sporting<br />

events with multiple camera angles,<br />

accessing digital photos or digital<br />

musicstoredonahomePCfromyour<br />

TV set, and participating in interactiveservicestiedtoTVprogramming<br />

suchasvotingandpolling,areafew<br />

examples of the exciting connectedentertainment<br />

services on the near<br />

horizon with IPTV. While some of<br />

these capabilities are possible with<br />

conventionalTVdistributionsystems,<br />

IPTVraisestheconsumerexperience<br />

toanewlevelandmakesitmucheasier<br />

to implement for the service<br />

provider.<br />

But let’s be clear: IPTV is not about<br />

streamingvideoovertheInternettoa<br />

PC or the ‘best efforts’ video quality<br />

that we experience on the Internet<br />

today.IPTVisaboutdeliveringatruly<br />

high-quality,competitive,multichannelTVservicetoconsumertelevision<br />

setsoveranIPnetworkcontrolledby<br />

thebroadbandprovider.IPTVserviceswillofferthefullrangeoffeatures<br />

that consumers expect, including<br />

standard and high-definition programming,VideoonDemand,Digital<br />

Video Recording, hundreds of linear<br />

channels, a rich Interactive<br />

ProgrammeGuideandmore.<br />

IPTVisthekindofbreakthroughthe<br />

TVindustryrarelysees.Likethetransitionfromblackandwhitetocolour<br />

TV,IPTVwillusherinthenext-generation<br />

TV entertainment that consumers<br />

will come to expect as the<br />

norm.Thetechnologywasnotcreated<br />

overnight.Ithasbeenindevelopment<br />

for over ten years, but is now being<br />

drivenforwardbysuchmarketforces<br />

asbroadbandadoptionandtheevolutionofdigitalentertainment.Analysts<br />

at Multimedia Research Group predictthattherewillbe27millionIPTV<br />

subscribersworldwideby2008.<br />

WhileIPTVpiggybacksontherapidly<br />

evolving advances in broadband and<br />

32


Triple play<br />

other technologies, a key difference<br />

withIPTVisthebusinessopportunity.IPTVisthemissinglinkneededto<br />

help service providers deliver a new<br />

generationofintegratedservicesinto<br />

thehome.Somepeoplerefertothisas<br />

the triple play, or quadruple play,<br />

when mobile services are <strong>include</strong>d,<br />

togetherwithvoice,videoandbroadband.<br />

IPTV,though,isreallyaboutdelivering<br />

the single play – a full range of<br />

seamlessly integrated communication,<br />

entertainment and information<br />

services and experiences to subscribersoverasingleconnectioninto<br />

thehome.<br />

The broadband connection behind<br />

next-generationTVserviceswillyield<br />

an exciting new range of TV content<br />

choices, personalisation, and connected<br />

experiences for consumers,<br />

regardless of where they are, what<br />

devicetheyareusing,andwhatkind<br />

ofphysicalnetworktheyareconnectedtoatthetime.<br />

IPTV’s architecture enables sending<br />

individualvideostreamstoindividual<br />

devicesinthehome,incontrasttothe<br />

broadcast model used by legacy TV<br />

distributionplatformswhereallchannelsaresenttoallsubscribersallthe<br />

time, which requires a massive<br />

amountofbandwidthtocarryallthat<br />

programming. IPTV’s much more<br />

Figure 1: Analysts at Multimedia Reasearch Group predict<br />

that there will be 27 million IPTV subscribers worldwide by<br />

2008.<br />

"Like the transition from<br />

black and white to<br />

colour TV, IPTV will<br />

usher in the<br />

next-generation TV<br />

entertainment that<br />

consumers will come to<br />

expect as the norm. "<br />

efficientuseofbandwidthmakespossibleanear-limitlessnumberofchannels<br />

and access to a huge library of<br />

live, on-demand and time-shifted,<br />

digitalvideorecorded,content,tothe<br />

consumer.<br />

By taking advantage of the two-way<br />

architecture of broadband, IPTV<br />

eliminatesthebandwidthconstraints<br />

inherent in broadcasting TV today,<br />

where operators face challenges to<br />

add more programming choices,<br />

especiallyondemandhigh-definition<br />

programming, in their space-constrainednetworks.<br />

IPTValsotakesadvantagesofthelatest<br />

in set-top box technology, with<br />

more powerful, broadband-enabled<br />

devices that will lead to significant<br />

advances in interactive programme<br />

guidesandnewviewerinterfaces.The<br />

same advances will enable advanced<br />

searchcapabilitiesaswellaspersonalisation<br />

and predictive<br />

guidance based on viewer<br />

preferencesandbehaviour.<br />

Nowthatthetechnologyis<br />

inplacethechallengeisto<br />

build and market a successful<br />

service to consumers.MarketersofIPTV<br />

services must clearly differentiate<br />

their offering<br />

through service capabilities,<br />

packaging, pricing<br />

and distribution.<br />

PackagingIPTVwithexisting<br />

primary services, such<br />

as high-speed data or<br />

telephonyservices,enables<br />

the network operator to<br />

reinvigorate his business<br />

whilesignificantlydecreasing<br />

subscriber churn.<br />

Subscribersbenefitfroma<br />

better total value propositionofintegratedcommunication<br />

and entertainment<br />

services, and in particular,<br />

a far better TV<br />

experience.<br />

More and more, consumersarebecomingused<br />

to interacting with digital entertainment.IPTVextendsthisconceptand<br />

enables next-generation TV services<br />

that consumer value, including the<br />

following:<br />

Networkedandremotedigitalvideo<br />

recording<br />

DVRs are all about watching television<br />

in your time. Adding the television/set-topboxtoanIP-basedhome<br />

networkincreasesthatabilityforconsumers,<br />

enabling TV watchers in the<br />

family room to record a football<br />

match while someone in the master<br />

bedroom records their favourite<br />

movie. IPTV also makes it easy to<br />

remotelyprogramtheDVRfromyour<br />

PC at the office or another Internetconnected<br />

device such as a mobile<br />

phone.<br />

Advancedcommunications<br />

features<br />

Today’s generation is conditioned to<br />

communicatewithfriendsandfamily<br />

in new ways. IPTV enables service<br />

providerstobetterleveragetheirmultiple<br />

products and build integrated<br />

messaging services where voicemail,<br />

SMSandevenemailcanbeaccessed<br />

viatheTVscreen.<br />

Next-generationinteractiveTV<br />

features<br />

IPTV’s always on, two-way connection<br />

is ideally suited for advanced<br />

interactivity that involves the viewer<br />

intheTVexperience.TV-basedapplicationssuchasvoting,changingcamera<br />

angles, real-time shopping and<br />

matching wits with game show contestantsareamongthemanypossibilities.<br />

Targetedadsandprogramme<br />

recommendations<br />

Since IPTV uses a broadband, not a<br />

broadcast, architecture, it means<br />

there is a two-way, 1:1 relationship<br />

betweenthenetworkoperatorandthe<br />

television viewer, which enables the<br />

deliveryofmore-personalisedcontent<br />

basedonasubscriber’sviewinghistory<br />

or "opt-in" personal information<br />

fromtheconsumer.<br />

Instantchannelchanging<br />

DigitalTVisgreat,butitcantakeup<br />

to two seconds just to tune a new<br />

channelonbroadcastdigitalTVplatforms.IPTVcanoffersoftware-based<br />

tuning that enables a subscriber to<br />

zapthroughchannelsinmilliseconds,<br />

actually faster than the blink of an<br />

33


Taking triple play to the next level<br />

The triple play market is ramping up and competition is<br />

ruthless. IP based services are driving the market to provide<br />

more for less, without sacrificing quality. Are you ready<br />

We at i3 see things end-to-end and provide customer<br />

premise equipment (CPE) as integrated solution components.<br />

We convert our pioneering experience within VoIP and IP TV<br />

into CPE that meets today’s needs as well as tomorrow’s<br />

opportunities. Our technology helps you control and personalize<br />

your service portfolio, reduce your operating costs,<br />

while helping you to build new broadband revenues.<br />

Maybe this is why leading service providers like<br />

Belgacom, TeliaSonera and others have chosen i3 to deliver<br />

CPE for their commercial deployments of IPTV and Voice<br />

over IP.<br />

Mood IP set-top boxes (STB) provide for advanced IP streaming media and<br />

Internet services, web browsing and e-mail. They are MPEG-4 AVC Ready with<br />

integrated Personal Video Recorder for personalized viewing and recording.<br />

Vood IP Residential Gateways provide Voice over IP and high-speed Internet<br />

access with integrated ADSL2+, FTTH and Ethernet connectivity. They are the<br />

intelligent gateway into the home for all IP communications.<br />

Meet us at IBC, Stand 4:350 Madrid, Stand 2003<br />

i3 micro technology – www.i3micro.com – EMEA +46 (0)8 506 388 00 – Americas +1 425 392 2229


Triple play<br />

"More and more,<br />

consumers are<br />

becoming used to<br />

interacting with digital<br />

entertainment."<br />

eye.Theuserexperienceisextremely<br />

important; IPTV services can add to<br />

theuservaluebynotintrudingonthe<br />

userexperience.<br />

Multiplepicture-in-pictureservices<br />

Forpicture-inpicture(PIP)functionality,<br />

broadcast TV requires multiple<br />

tunersinthereceivingdevice,onefor<br />

eachimage.WithIPTV,tuningissoftware-based,<br />

meaning no hardware<br />

tuners are required and multiple<br />

movingpicturescanbecost-effectively<br />

shown on the screen at once. One<br />

applicationofmultiplePIPisaricher<br />

mosaic interactive programme guide<br />

(IPG) with six to eight moving video<br />

thumbnails per screen, contrasted<br />

withthesimpletext-basedIPGspeoplearefamiliarwithtoday.<br />

Piracyandillegalduplicationofcontent<br />

are major issues for content<br />

providers.Acontentprotectionmodel<br />

thatsafeguardscontentownerswithoutsacrificingconsumerexperienceis<br />

important. When safeguards are in<br />

place,andhigh-qualitycontentcanbe<br />

delivered, content owners will take<br />

advantageofthenewpurchasemodelsthatIPTVenables.<br />

Digital rights management (DRM)<br />

systemsdefineandpreservethecontent<br />

owners’ rights to managing the<br />

distributionofcontentaswellasthe<br />

rights of the end user to view it.<br />

AdvancedDRMtechnologywillmake<br />

available a variety of new content<br />

optionsforIPTVandahomenetwork<br />

might contain several IP-based<br />

devicescapableofaccessing,storing,<br />

sharingordisplayingDRM-protected<br />

digitalTVcontentinasecureway.<br />

To illustrate, think of a set-top box<br />

thatreceivesaTVsignalandstoresit<br />

on the set-top’s DVR. The set-top<br />

could securely make that content<br />

available to other televisions in the<br />

homeortoaportablevideoplayer–<br />

aslongastherighttodosohasbeen<br />

acquired from the content provider.<br />

ThebusinessrulesforDRMaredrivenbythecontentownersandservice<br />

providers.<br />

Soon, the hardware required to<br />

decode and display IPTV services<br />

will be embedded in single, lowcost<br />

silicon chips. This will help<br />

drivedownthetotalcostsofdeployingandmaintaininganIPTVsystem.<br />

Withnewsiliconadvances,IPTVsettopboxescanbecomemorepowerful,<br />

more economical and fuel greater<br />

IPTVinnovation.<br />

Businessmodel<br />

Thisnewgenerationofchipswillalso<br />

enableanewcategoryof‘IPTVready’<br />

consumer devices. In some markets,<br />

consumers will be able to choose<br />

betweenanarrayofdevicesandmanufacturers<br />

for a reasonably priced<br />

IPTV receiver with the features and<br />

functionality that best meets their<br />

needs.<br />

The business model might look very<br />

similar to the mobile phone market<br />

today, where operators subsidise<br />

basic low-cost versions, but consumers<br />

can buy more powerful, feature-richdevices.<br />

Eventually, consumers will have yet<br />

anotherchoice–whethertosubscribe<br />

toanIPTVservicefromtheirtelecommunications<br />

provider, their cable<br />

providerorfromtheemerginggroup<br />

ofwirelessbroadbandproviders.The<br />

advantages of IP-based networks,<br />

especially the bandwidth and economic<br />

efficiencies gained by delivering<br />

video, broadband and telephony<br />

services over a single network, are<br />

numerous.<br />

Both cable and telco operators will<br />

inevitably converge upon IP-based<br />

networksforalltheircommunication<br />

services.Thelinesbetweencableand<br />

telco will blur even more than they<br />

have today. Both are quickly becomingmulti-serviceprovidersofferinga<br />

full range of communication and<br />

entertainment services and compete<br />

in terms of quality of service, the<br />

value of their connected-entertainment<br />

and connected-information<br />

offerings, and how well they market<br />

theirservicebundles.<br />

While there are significant benefits<br />

forserviceproviderswhoadoptIPTV,<br />

consumerswillbetheultimatebeneficiaries<br />

with more choices, better<br />

prices,fasterinnovationand,overall,<br />

amuchbetterTVexperience.<br />

www.connect-world.com<br />

VISIT the online<br />

version of<br />

The decision<br />

makers’ forum for<br />

ICT driven<br />

development.<br />

REVIEW<br />

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upcoming events<br />

and our contributing<br />

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www.connect-world.com<br />

35


Triple play<br />

Last chance for telco profitability: triple play networks<br />

by Kevin DeNuccio, President and CEO, Redback<br />

TraditionalfixedvoicetelcosfaceseriousthreatsfromIP-basednetworks:growthand<br />

perminuterevenuesaredeclining,andmobileservicecompetitionhascapturedclients.<br />

BroadbandIP-basednetworksletacarrierusesinglehighqualitytripleplaynetworksto<br />

carryalltraditionalvoiceanddataservices,provideVPNs,video,gamesandahostof<br />

otherpersonalisedservicesaswell.Telcosneedtoconsolidatetheirnetworkstooffer<br />

usersanarrayofcost-effectivetailor-madeservicesviaabroadbandIPinfrastructure.<br />

KevinA.DeNuccioisthePresidentandChiefExecutiveOfficerofRedback.Heservedpreviouslyasthe<br />

SeniorVicePresidentof<strong>World</strong>wideServiceProviderOperationsatCiscoSystems,wherehewasresponsibleforallfieldactivitiesintheserviceprovidermarketplaceglobally.DuringhistenureatCisco,Mr<br />

DeNuccioalsomanagedworldwidefieldoperations,includingallsalesandengineeringsupportorganisations.BeforejoiningCiscoSystems,hewasthefounder,PresidentandChiefExecutiveOfficerofBell<br />

Atlantic Network Integration, a wholly owned subsidiary of Bell Atlantic, now Verizon<br />

Communications,responsibleforcorporatestrategyandoperations.MrDeNucciohasalsoheldsenior<br />

managementpositionsatbothUnisysCorporationandWangLaboratoriesasVicePresidentintheir<br />

networkintegrationandworldwidechannelpartnerbusinesses.<br />

KevinDeNuccioearnedhisdegreeinFinance,fromNortheasternUniversity,andgraduatedfromthe<br />

ExecutiveMBAprogrammeatColumbiaUniversity.<br />

Advances in IP (Internet Protocol)<br />

equipment, rapidly increasing broadband<br />

penetration and growing residential<br />

broadband capacity are revolutionisingthedeliveryofservicesvia<br />

broadband. Interactive television,<br />

voiceandnextgenerationonlinegaming<br />

services are rapidly becoming a<br />

reality,duetobreakthrougharchitecturesthatdelivertheseservicesatdramaticallylowercost.<br />

Historically, telecom operators have<br />

dedicated entire networks to single<br />

services. This means that telecom<br />

operatorsneededanetworkforvoice,<br />

anotherforleasedlines,oneforVPNs<br />

(virtual private networks), one more<br />

for Internet access, and so on. With<br />

thegrowthofbroadbandandIP,acarriercanbuildasinglenetworktocarry<br />

alltheseservicesandmore,especially<br />

since the quality of service end users<br />

demand is now available using IP<br />

networks.<br />

Dialtonebroadband<br />

Similartothealways-availabletelephony<br />

dial tone, many carriers are<br />

preparing their networks to offer a<br />

‘dial tone for broadband’ service that<br />

will bring broadband service, by<br />

default, to every household. This<br />

broadband connection will provide<br />

anynewserviceaconsumerrequests.<br />

This gives residential and business<br />

users access to a wealth of services,<br />

rangingfromVPNstovideo,togames<br />

or voice. Eventually, when greater<br />

bandwidth is available, virtual reality<br />

based applications will be accessible<br />

overbroadbandconnections.<br />

Thetelecomoperator<br />

perspective<br />

The end user sees a virtually endless<br />

streamofIP-basedcapabilities.What,<br />

though,doestheadventofbroadband<br />

IP applications mean for the telecom<br />

operatorHowcanatelecomoperator<br />

use these technologies to position<br />

itselfforhealthygrowth<br />

Voice,thecorebusinessoftraditional<br />

wireline telcos, faces serious threats<br />

fromIP-basednetworks.Voiceservice<br />

growthhasbeenslow,perminuterevenues<br />

are declining and competition<br />

frommobileserviceshasdrainedfixed<br />

traffic.<br />

A few years ago, the volume of data<br />

traffic, mostly Internet access, surpassedthatofvoiceontelconetworks.<br />

Consequently,theInternetProtocolis<br />

now the dominant network protocol.<br />

Analysts predict that Video-over-<br />

Broadbandtrafficwilleventuallysurpassvoiceanddata.<br />

Today’s competitive world is a challenge<br />

for telcos. They face shrinking<br />

voice revenues and need to generate<br />

new revenue, but income from<br />

Internetaccessserviceshasbeenlow,<br />

and often barely profitable. Internet<br />

accesspricesareexpectedtodrop,so<br />

whatcanthetelcosdo<br />

Thetwoobviouschoicesareeitherto<br />

selllowcostaccessandtransportorto<br />

offercontentandbecomeafullservice<br />

provider.Thefirstoptionrequiresthe<br />

telco to pursue the lowest possible<br />

costsforreliableserviceandbecomea<br />

costleader.Thesecondoptioncallsfor<br />

adding value to its access and transport<br />

services to increase its Average<br />

36


Triple play<br />

Enhancingtheenduser<br />

experience<br />

Toexecutea‘highvalueadded’strategy,<br />

operators need to enhance the<br />

experience to persuade the user to<br />

spend more. IPTV’s most successful<br />

deployments to date have offered<br />

eitherexclusivecontent,suchnational<br />

sportseventsorinteractiveelements.<br />

Today, service providers in Belgium,<br />

SpainandTheNetherlandshavepurchasedexclusiverightstotheirnational<br />

football leagues. They expect to<br />

offerafullyinteractiveviewerexperience.<br />

Figure 1: Basic broadband Internet services have been the only ray of hope of growth.<br />

Revenue per User (ARPU). In truth,<br />

most telcos risk their survival if they<br />

donotdoboth.<br />

usersplayinganonlinegame,watching<br />

IP Television or making a VoIP<br />

phonecallasitisforabusiness.<br />

Forexample,whileaviewerwatching<br />

amatchhewillbealertedifagoalis<br />

scoredinanothermatch.Hecan,ifhe<br />

chooses, see a replay of the goal and<br />

then switch back to the game he was<br />

originallywatching.<br />

This means telcos must abandon<br />

today’s ‘dedicated-network-per-service’modelandconsolidatetheirservice-dedicated<br />

networks into a single<br />

networkarchitecture.<br />

Asinglenetworkforallservices,using<br />

standardised network elements and<br />

procedures,significantlyreducescapitalandoperatingexpenses.<br />

Single network architectures today,<br />

generally rely upon IP-based broadbandnetworks.Telcos,tomakeuseof<br />

their existing copper infrastructure,<br />

tendtochooseADSLfortheirbroadbandsubscriberaccess.<br />

Current IP technology can provide<br />

timecriticalanddelaysensitiveservices<br />

such as voice or video running<br />

alongside each other on a single network.Offeringthebasicsuiteofservicesoverasinglenetwork,usingasingle<br />

protocol, lowers the operator’s<br />

costs and enhances the subscriber<br />

experience.<br />

Theenduserperspective<br />

Today,businessandconsumerswant<br />

more than traditional services. They<br />

look for advanced services anywhere,<br />

anyplace,anytime.<br />

Figure1showstheunificationofresidential<br />

and business user requirementsandexpectations.Traditionally,<br />

residential services were about scale<br />

andservicevariety,whereasforbusiness<br />

users, reliability and performancecamefirst.Broadbandtechnologies<br />

have changed this. Today, reliability<br />

is as important for residential<br />

Think about how important broadband<br />

Internet connections are these<br />

days.Ifafixedphonedoesnotwork,a<br />

usergetstheexactsameservicefroma<br />

mobile phone. Today, if the broadbandInternetconnectionfailsthereis<br />

noalternative.<br />

Greaterexpectations<br />

The unification of business and residential<br />

requirements generates<br />

greater expectations. For example,<br />

Internet users expect their voice and<br />

videoservicestobeavailablewherever<br />

theuserisonwhateverdeviceisbeing<br />

used.Onlythescreensize–thedifference<br />

between a 2" cell phone screen<br />

anda42"LCD–nottheconnection,<br />

limitstheviewer’sexperience.<br />

Eachusercanreceiveindividual,personalisedtelevisionandvideocontent.<br />

VideooverIP,IPTV,willletonewatch<br />

the10o’clocknewsatanytime–can<br />

we still call it the 10 o’clock news –<br />

and permit interaction between the<br />

network,otherusersandotherapplications.<br />

Today’s cable or satellite systems are<br />

unidirectional. Broadband IP makes<br />

two-way communication, including<br />

fully interactive television, possible.<br />

Interaction could vary from online<br />

voting regarding a show’s content, to<br />

directingandselectingdifferentcameraanglesduring<strong>World</strong>Cupfootball.<br />

New broadband IP applications,<br />

including interactivity, will drive revenue<br />

growth as full service telecom<br />

operators begin to offer ‘one-stop<br />

shops’.<br />

The next way to enhance the user<br />

experience is to make the broadband<br />

IP network ‘subscriber aware’. The<br />

system should recognize each user,<br />

andusersession,tocontrolthequality<br />

of the service and personalise the<br />

userexperience.<br />

In many countries, people pay relativelylittletoseeagreatmanychannels.NewbroadbandIPTVandVideo<br />

on Demand services will have to be<br />

affordable and comparably priced.<br />

Giventhepricesensitivity,telcosmust<br />

continuetodelivertraditionalservices<br />

economically despite the addition of<br />

newservices.Thiswillonlybepossible<br />

using an integrated IP-based triple<br />

play,voice,dataandvideo,network.<br />

With broadband IP technology movingaheadrapidly,telcoswillbeableto<br />

consolidate their networks and combine<br />

strategies to offer an advanced<br />

user experience through a subscriber<br />

awarenetwork.<br />

Byofferingeachuseranarrayoftailor-madeservicesviaacosteffective,<br />

highly controllable and highly available<br />

broadband IP infrastructure<br />

everyonewins.<br />

Withnewindividualizedservicessoon<br />

to be a reality, and the strategies at<br />

handfortheoperator,willthe‘bigbad<br />

Telco’ and its customers end up as<br />

closefriendsItcouldverywellbethe<br />

case,astherewillbeonlywinners.<br />

38


User and developer communities<br />

IT has entered the participation age<br />

by Darrell Jordan-Smith, Vice President, Global Telecommunications, Sun Microsystems<br />

Thegrowthofmobilecommunications,voiceanddata,ishelpingtocreatebothcommunitiesofusersandcommunitiesofapplicationsdeveloperstoserveuserneeds.The<br />

participants in these communities are driving change, creating new businesses, new<br />

socialservicesandanewnetworkeconomywithgrowthfuelledbysharingandcollaboration.Carriersfacingdecliningvoicerevenuesarecountinguponthesenewdevelopmentstoprovidecompellingnewservicesthatbuildrevenuesandreducechurn.<br />

DarrellJordan-SmithisresponsibleforSun'sstrategyandprofilewithintheglobaltelecommunications<br />

industry.AppointedinOctober2004,MrJordan-Smithprovidesstrategicmarketleadershipandhelps<br />

definesolutionsforcustomersthatexploitindustrytrendstoaddresstheirkeybusinessandtechnology<br />

issues.Beforehiscurrentrole,heestablishedandledtheVodafoneglobalaccountteam,responsiblefor<br />

the business relationship with the Vodafone Group across 50 countries. Over the years, Mr Jordan-<br />

Smith has developed a reputation for innovative business development practices targeted at helping<br />

serviceprovidersincreaseARPU,driveoutcostandrealizefullreturnsfromITinvestments.BeforejoiningSunin2000,MrJordan-SmithheldseniorsalesandmanagementroleswithintheAT&TGroupof<br />

companiesincludingLucent,NCR,AT&TBCSandAT&TCommunications.<br />

NowbasedintheUSA,DarrellJordan-SmithholdsanMScandMBAfromtheUniversityofGlasgow.<br />

The pace of communications technologiesischangingevermorerapidly.Notjustinsmallways,butinvery<br />

powerful ways that are putting the<br />

development of communications<br />

applications,suchasVoIPandmobile<br />

contentservices,inthehandsofmany<br />

newplayers.<br />

We can call this new era the<br />

Participation Age, where given dramatically<br />

lowered barriers to entry,<br />

plummeting device prices and nearuniversal<br />

connectivity, subscribers<br />

andothersaredrivinganewroundof<br />

networkparticipation.<br />

Baseduponhandset-drivencommunicationssuchasSMSmessagestoweb<br />

services, participants are forming<br />

communitiesthatdrivechange,create<br />

new businesses, new social services<br />

andnewdiscoveries.<br />

This network economy growth is<br />

fuelled by sharing and collaboration<br />

among communities interconnected<br />

bytechnologyanddrivenbypurpose.<br />

Sharing and collaboration in the<br />

ParticipationAgewillstimulateinnovation<br />

and help participants around<br />

theworldgrowandprosper.<br />

Global carriers look to their equipmentandsoftwaresuppliersforproductsandservicesthatwillhelppeople<br />

aroundtheworldparticipateinsomething<br />

bigger. Suppliers need to focus<br />

uponhelpingcarriersimproveoperations,<br />

cut costs in their data centres<br />

anduponsupplyingtoolsandservice<br />

deliveryplatforms,sothatcarrierscan<br />

createcompellingnewapplications.<br />

WhatEMEAcarriersface<br />

While all can participate in making<br />

things better as a community,<br />

telecommunications executives, realistically,mustfocusuponthebottom<br />

line.Costreductioniscurrentlyabig<br />

concernforEMEAtelecomoperators.<br />

They need ways to consolidate their<br />

infrastructures, to save money and<br />

freeupresourcestoinvestindevelopingnewservicesanddrivingmorerevenue.<br />

Voicerevenuesaredeclining,sotelecom<br />

operators need to reduce churn<br />

and derive additional revenues from<br />

existing customers. Accordingly, the<br />

telecom operators’ top priority is<br />

developing compelling and popular<br />

servicesfortheirsubscribers.<br />

Vendors can assist carriers with cost<br />

reductionsandinnovativeofferingsof<br />

incremental revenue-generating services.<br />

Providing developers with powerful<br />

software creation tools enables<br />

them easily and rapidly to develop<br />

compelling and marketable applicationsnotjust‘metoo’copiesofexistingservices.Thatiswhatparticipation<br />

isabout.<br />

Networkoperatorsbattleconstantlyto<br />

increasetheirARPU(averagerevenue<br />

peruser)andAMPU(averagemargin<br />

peruser)whiledecreasingchurnrate.<br />

EMEA’s wireless operators are working<br />

to make it easy for customers to<br />

discover and use the new data and<br />

messagingservicestheyofferthatprovideaccesstoentertainment,informationandcommunicationchannels.<br />

39


Africa’s most<br />

comprehensive<br />

RFID event<br />

25 – 28 October 2005<br />

Sandton Convention Centre, Johannesburg, South Africa<br />

Keynote speakers<br />

Raymond<br />

Chegwidden<br />

Solutions Architect<br />

Nissan, South Africa<br />

Johan Stoop<br />

Senior Manager – MES<br />

Assembly<br />

Toyota, South Africa<br />

Lynne Stewart<br />

Manager<br />

GS1, South Africa<br />

Tracking<br />

Co-located with<br />

The RFID conference that will provide your organisation with the<br />

latest information regarding this revolutionary technology<br />

• Learn about the proper and complete implementation of RFID<br />

• Smooth out the integration process and how obstacles can be overcome<br />

• Reduce inventory shrinkage and critical order cycle times while improving demand<br />

forecasting accuracy<br />

• Hear about the rapid progress that has been made in terms of global standards<br />

For more information regarding this event, contact Megan Hainsworth, Marketing<br />

Manager on (t) +27 (0)11 516 4052 or e-mail megan.hainsworth@terrapinn.co.za<br />

Media partner<br />

Organised by<br />

www.worldofcards.biz/2005/rfidza<br />

Terrapinn0181


User and developer communities<br />

Fixed-line telecoms are examining<br />

waysofutilisingtheirnetworkstoprovideasmanynewservicesaspossible,<br />

tocounteractvoicerevenuedecline.<br />

Fixed-line operators are competing<br />

against the decreasing price and<br />

increasing reliability of mobile calls,<br />

and the tendency of many mobile<br />

userstochoosetohavejustonephone<br />

andonenumber.Theyarealsofighting<br />

the threat from cable companies<br />

that offer triple play, television, telephone<br />

and broadband, services combined.<br />

Fixed-line operators are fighting<br />

back with attractive bundles of<br />

broadbandaccess,cheapervoicecalls,<br />

soontocomeIPTV(InternetProtocol<br />

television) and, at times, mobile<br />

telephony.<br />

Today,applications,servicesanddigitalcontentareincreasinglytargetedto<br />

eachspecificcustomer,sotheimportanceofcustomeridentityandidentitymanagementisgrowingforoperators,<br />

content owners and customers.<br />

Today, too, telecommunications is<br />

highly virtualised because of packetbased<br />

communications, VoIP, GSM,<br />

CDMA,etc.Thewirelineisgone,and<br />

withitthedirectconnectionbetween<br />

carrierandcustomer.Whatremainsis<br />

thedigitalidentityoftheconsumer.<br />

Telecommunicationsservicesareconverging,<br />

and so are digital identity<br />

services. For example, the IP<br />

Multimedia Subsystem (IMS) architecture’s<br />

HSS (Home Subscriber<br />

Server), the network database that<br />

identifies the user, especially while<br />

roaming, to the local system, is the<br />

growthareaforthemoderncarrier.<br />

ThecarrierviewinEMEA<br />

andUSA<br />

In 2005, EMEA carriers are working<br />

torebuildprofitability.Theyareevaluating<br />

IMS deployment while maintaining<br />

legacy networks. Many carriers<br />

will also begin IPTV exploration<br />

anddeployment.Thetopthreeissues<br />

fortelecomsinEMEA,asforallbusinesses,<br />

are: ways to reduce cost and<br />

complexity, the quick and efficient<br />

delivery of new services (i.e., voice,<br />

data,pictureandvideo)andreturning<br />

to,andmaintaining,profitability.<br />

In the future, it will be the servers,<br />

storage,softwareandservicesthatwill<br />

make it possible to offer the ‘one-tomany’<br />

or ‘machine-to-machine’ messagingservices,themobilewebservices<br />

and the enterprise-class applicationsthatwilldriverevenueandusage<br />

during the coming years. Partnering<br />

"Today, applications,<br />

services and digital<br />

content are increasingly<br />

targeted to each<br />

specific customer, so<br />

the importance of customer<br />

identity and identity<br />

management is<br />

growing for operators,<br />

content owners and<br />

customers."<br />

between equipment makers, software<br />

vendors and carriers offering managed<br />

services is alive and well in the<br />

USA.Thefocusisuponbringingcapabilities<br />

and services to market based<br />

upon the IMS convergence architecture,VoIPapplications,videoconferencing,multi-playergamingandringtonedownloads,alltogivethecarriers<br />

moretosellthanplainoldvoice.<br />

<strong>World</strong>wide, rollouts of IMS are just<br />

beginning.IMSrequiresanewgeneration<br />

of carrier-grade hardware platforms,<br />

next-generation blade platforms,capableofsupportingthehighbandwidth<br />

telecom services that they<br />

support. Blade server technology is<br />

makinggreatinroadsintocarrierdata<br />

centres. It is particularly suited to<br />

optimise voice and data convergence<br />

on next-generation networks.<br />

Enterprise software, running on<br />

advancedoperatingsystemsthatmanageidentityprofilesandpermissions,<br />

provides operators with a solid foundationtodevelopIMSapplications.<br />

Java,acasestudyfor<br />

community<br />

The community and participation<br />

modelisevidentinthemanycompaniesandindustriesthathavespunoff<br />

from Java. Java created an environment<br />

that facilitated great growth in<br />

applicationsdevelopment,byenabling<br />

the communities of developers who<br />

took open development platforms to<br />

heart.Businessapplications,information<br />

gateways and massively scalable<br />

networkgames,whichsimplydidnot<br />

exist before the widespread adoption<br />

ofJava,arenowincommonuse.<br />

Securitymustbebuiltintoeverything<br />

these days, not just provided as<br />

optional add-ons – you must bake<br />

securityintoproductsatthedevelopment<br />

stage. The Java platform, for<br />

example,wasdevelopedwithsecurity<br />

asafundamentalprinciple,soitcannotbeusedtocarryorspreadviruses<br />

to the operating system or a phone.<br />

Java’sopenmodelmakesitappealing<br />

to developers and carriers, who seek<br />

low development and ongoing operationalcosts.<br />

Ovumprojectsworldwidemobiledata<br />

servicesrevenuesofUS$137billionby<br />

2008. That means the market will<br />

growroughly21percentannuallyfor<br />

the next four years! With more than<br />

700 million Java-enabled handsets<br />

deployed,theJavadevelopercommunity<br />

will grow to develop the new<br />

applications this growing market<br />

demands.<br />

Economicandsocial<br />

progress<br />

NotallofplanetEarth’scitizenshave<br />

equal access to technology. Not just<br />

governments, but large global firms<br />

need to dedicate themselves to<br />

improving network accessibility and<br />

eradicating the digital divide.<br />

Enablinganewwaveofnetworkparticipants,betheydevelopingapplicationsforhealthcare,education,manufacturing<br />

or gamers, will deliver<br />

untoldeconomicandsocialprogress.<br />

AttheUnitedNationsthispastJune,<br />

wejoinedotherscommittedtophilanthropiceffortstodriveparticipationin<br />

this new age. China, India, Ethiopia,<br />

South Africa, Nigeria and Kenya<br />

received millions of dollars in<br />

Academic Excellence Grants and<br />

donations during the last two years,<br />

and tens of thousands of students in<br />

China now have free access to webbased<br />

courses. These and other programmes<br />

focusing specifically on<br />

increasing participation will continue<br />

under the Share the Opportunity<br />

umbrella.<br />

Today, those without an education<br />

andthosewithoutaccesstocomputers<br />

mustalsoplayapartinthegrowing,<br />

interconnected,communitythatleverages<br />

the Internet, technology and<br />

tools.Theywillhelpdefinetheneeds,<br />

the applications and services that<br />

build better lives, a better economy<br />

andabettersocietyforall.<br />

They too, and their children, will be<br />

part of the next generation of engineers,<br />

scientists, diplomats, business<br />

leaders, journalists, artists and consumers.Theyneedthenetworktoparticipateinthenewinformationsociety.Weareworkinghardtoexpandthe<br />

opportunities for everyone irrespectiveofculture,nationalityoreconomicmeans.<br />

41


Designing<br />

Future Business<br />

Think forward<br />

Detecon International is one of the world’s leading consultancies in the field of<br />

information and communications technology (ICT). Our consulting expertise is<br />

based on a comprehensive understanding of markets, business transactions and<br />

technologies that has been proven worldwide. On the basis of this unique expertise<br />

in the ICT field and our integrated approach of management and technology<br />

consulting we advise international telecommunication companies, high-tech firms<br />

and governments as well as organizations that deal with regulation and competition<br />

issues. We offer these clients a comprehensive, integral consulting portfolio over the<br />

entire market life cycle - from the adaptation of regulation policies in the forefront<br />

of the sector liberalization over top level management and technology consultancy<br />

during start-up, growth and consolidation up to interim management.<br />

To find out more about Detecon please visit us at:<br />

www.detecon.com<br />

info@detecon.com<br />

Consulting<br />

DETECON


Mobile convergence<br />

Emerging opportunities in a destructive environment<br />

by Raghu Rau, Corporate Vice President, Global Marketing and Strategy, Networks, Motorola<br />

TheInternet-basedcommunicationsstandardsandthedigitisationofcontentunderpin<br />

convergenceinthetelecomssector.Thesemergingtrendsareoftenconsidered‘destructive’becauseoftheimpactofconvergenceupontraditionalbusinessmodels.Traditional<br />

mobileandfixed-linebusinessmodelscannolongerprotectandgrowbusinessinan<br />

environmentthatismuchmorecompetitive.Convergenceisachallenge,butitalsoprovidesarangeofopportunities.TheintegrationofIPtechnologyintotelecomsnetworks<br />

isahighlyconstructive,notdestructive,development.<br />

RaghuRauisCorporateVicePresidentofGlobalMarketingandStrategyforMotorolaNetworks.Heis<br />

involvedinthedevelopmentofstrategicplansforthenetworksbusinessaswellasmanagingtheglobal<br />

marketing of communications solutions to wireless and wireline carriers worldwide. Mr Rau has<br />

morethan17yearsexperienceinthetelecommunicationsindustry.HehasheldassignmentsinAsia,<br />

EuropeandtheUnitedStates,andhaspriorexperiencewithmultinationalcorporationsandtheestablishmentofstart-ups.MrRauhasguestlecturedatreputeduniversitiesworldwideandhasspokenat<br />

numerousindustryconferences.<br />

Raghu Rau earned a bachelor's degree in Engineering and an MBA from the Indian Institute of<br />

Management,Ahmedabad.<br />

Of all the changes underway in network<br />

development, two are very<br />

important. The first is speed of connection.<br />

Whether it is a mobile company,fixed-lineplayerornewentrant<br />

seeking to provide wireless broadband,<br />

speeds to the handset will<br />

increasewithinthenext18monthsto<br />

1-1.5Mpbs. That is comparable to<br />

compressing the capabilities of a<br />

fixed-line broadband-connected PC<br />

intoamobilehandset.<br />

Secondly, telecoms companies are<br />

integrating IP technologies that can<br />

marry previously independent networks<br />

using the same IP core platform.Thisdevelopmentenablesusers<br />

to access services in a more intuitive<br />

andflexiblemanner.<br />

Other advances are also important.<br />

Digitisation of content is shrinking<br />

moreintolessmakingiteasiertosend<br />

video, music and images. Content is<br />

becomingmorediverse.Mediaowners<br />

areseekingfreshwaystodelivertheir<br />

productwhileprogrammemakersare<br />

seekingtobroadcastmini-versionsof<br />

shows to mobile devices. Consumers<br />

arealsobecomingmorefamiliarwith<br />

digitaltechnologies.TheiPodanddigital<br />

camera generation now expect<br />

consumer devices to offer a richer<br />

experience with multi-function applications.<br />

Mobile devices with larger coloured<br />

screens, higher-resolution digital and<br />

video cameras, and hard disk capacitiesthatrivalMP3playersaremeeting<br />

this demand. Devices are also more<br />

intelligent, providing highly intuitive<br />

interfaces that will influence user<br />

behaviour,encouragingconsumersto<br />

access content from their mobile<br />

deviceratherthanfromtheirPC.<br />

These developments will support<br />

more advanced services and interactivity<br />

for consumers that are tailored<br />

totheirlocationandusagedemands.<br />

Advancedservices<br />

Services will especially improve in<br />

three areas: person-to-person communication,<br />

entertainment and businessapplications.<br />

Thanks to exciting developments in<br />

Push-to-X services, communication<br />

between individuals and groups will<br />

advance. Push-to-X utilises an<br />

‘always-on’ handset to provide single<br />

button access to a range of products,<br />

toinstantlysnapandsendaphotoor<br />

videotoanindividualorgrouporcontactpeopleintheirarea(whowillbe<br />

visible on the handset) and receive<br />

directionsonhowtofindthem.They<br />

canconferencewithagroupoffriends<br />

asifusingawalkie-talkie,andbeable<br />

to Push-to-Ask their handset a question,<br />

or to alert them to events when<br />

theyhappen–astockpriceevent,the<br />

snow’s falling, the surf’s up or when<br />

plane tickets become available at a<br />

predeterminedprice.<br />

Entertainment will be enhanced<br />

throughhigh-speedInternetaccess.A<br />

consumerwillbeabletobuyatrackor<br />

albumthatheorshehaslistenedtoon<br />

ahandset’sradio,atouchofabutton<br />

willdownloadthetrackinlessthana<br />

43


Mobile convergence<br />

minute. Enhanced data transmission<br />

speedswillalsosupportrichergames,<br />

similar in game-play to today’s dedicated<br />

handheld consoles. With<br />

enhanced video codecs (coderdecoders)<br />

enabling movie clips to be<br />

easilyaccessed,subscriberswilltravel<br />

with a games console, jukebox, video<br />

conferencingandvideolibrarydevice.<br />

Wireless broadband, on the go, will<br />

enable travellers to check traffic,<br />

reviewlocalrestaurantsandreservea<br />

table, and, whilst waiting for a meetingorplane,watchthenewsonbroadbandTVordownloadanewgame.<br />

Businessuserswillbenefitfromubiquitous,<br />

enriched, intuitive mobile<br />

communication. There<br />

will be one-button<br />

access to mobile video<br />

and voice conferencing,<br />

while emails with<br />

attachments can be<br />

accessed and sent.<br />

Fully mobile connections<br />

will have an<br />

always-on high-speed<br />

link to the corporate<br />

networkforimpressive<br />

productivity and efficienciesgains.<br />

The services outlined<br />

are compelling productsinthemselvesand<br />

offeragenuinechange<br />

in performance for<br />

businesses and consumers alike. The<br />

‘seamless mobility’ environment will<br />

offeruninterrupted,always-onaccess<br />

to information, entertainment and<br />

communication, when, where and<br />

how consumers want it regardless of<br />

device,networkorlocation.<br />

Seamlessmobility<br />

The newly integrated IP core technologiesattheheartofnetworkswill<br />

connect new and legacy service systems.Networkswillbeabletohandle<br />

a user request intelligently to ensure<br />

thattheoptimumdeliverytechnology<br />

is automatically assigned to the<br />

device. For example, if a person is<br />

accessingtheInternetusingamobile<br />

device while walking down a street,<br />

the wireless network will supply the<br />

service.<br />

As they walk into a coffee shop with<br />

hot-spotaccess,thesessionwillautomaticallyswapover.Ifanexecutiveis<br />

onaconferencecallandneedstodrive<br />

thechildrentoschool,thecallcanbe<br />

carriedovertothecar.Iftheyarelistening<br />

to the car radio, users can<br />

pausetheprogrammewhiletheypark<br />

andwalkintothehousebeforepressing‘resume’onthehomestereo.<br />

Such seamless mobility works with<br />

users to meet their communications<br />

demands with a range of rich and<br />

compellingproducts,athome,atwork<br />

or on the move. The new experience<br />

theseservicesprovideaddressesconcerns<br />

over its prospects, particularly<br />

regarding voice ARPUs (average revenue<br />

per user). Analysts, once again,<br />

predict a strong period of growth for<br />

telecomscompaniesinboththefixed<br />

and wireless markets. Data services,<br />

especially, show huge potential (see<br />

Figure1).<br />

Figure 1: Mobile broadband alone shows huge promise.<br />

Services,however,aretheicingonthe<br />

cake. The foundations of success will<br />

rely on technology integration,<br />

realignment of business models and<br />

pricingstructures.<br />

Enablingtechnologies–the<br />

core<br />

There are several important enabling<br />

technologies at the heart of flexible,<br />

high-speed service provision. The<br />

increasing integration of IP systems<br />

into network cores, in particular, the<br />

Internet Protocol-based IP<br />

Multimedia Subsystem (IMS), provides<br />

flexibility for the automatic<br />

transfer of services between<br />

Bluetooth, mobile, wireless LAN and<br />

fixed telecoms environments. Since<br />

IMS uses common protocols, it<br />

becomes easier for customers to<br />

access–andoperatorstobillcontent<br />

providedbymediaowners.Moreover,<br />

IMS automatically connects to the<br />

bestavailablenetwork.<br />

Handsets will use another Internetsourced<br />

technology, Session Internet<br />

Protocol (SIP). The ‘session’ is effectivelyarequestforaservicefromthe<br />

handset,beitforasimplevoicecall,a<br />

video or a voice-only conference<br />

between colleagues. SIP’s inherent<br />

adaptability makes it attractive.<br />

Services are available simultaneously<br />

so a customer can select the most<br />

appropriatecombinationofmediafor<br />

their communications needs (video,<br />

voice,textorinstantmessage)inreal<br />

time.<br />

Accesstechnologies<br />

A range of new standards-approved<br />

access technologies lets operators<br />

increasenetworkefficiencyandspeed<br />

connections to end users. The most<br />

prominent are the<br />

W o r l d w i d e<br />

Interoperability for<br />

Microwave Access<br />

(WiMAX), CDMA<br />

1xEV-DO and High-<br />

SpeedDownlinkPacket<br />

Access technology<br />

(HSDPA).Allwilloffer<br />

broadband, or higher,<br />

speeds to devices.<br />

HSDPA and EV-DO<br />

will primarily be<br />

applied to 3G-andbeyondnetworkswhile<br />

WiMAXwillbeusedin<br />

metropolitan areas to<br />

support wireless data<br />

andVoiceoverInternet<br />

Protocol (VoIP) applications.<br />

WiMAX permits fixed-line<br />

companies to offer low cost broadband<br />

and VoIP services, but can also<br />

give mobile operators enhanced network<br />

capacities and additional transportoptionstosupportdataandVoIP<br />

services.<br />

CDMA 1xEV-DO embraces convergencethroughanexpandingrangeof<br />

IP-basedfeatures.Itenablestheprovision<br />

of advanced wireless services<br />

and applications and as it is a more<br />

efficienttechnologyofferingenhanced<br />

system capacity, lowers acquisition<br />

and management costs. Peak downloadspeedsare2.4Megabitspersecond<br />

– with average speeds of 300 to<br />

500Kilobitspersecondtothemobile<br />

device–letoperatorstakefulladvantageofmultimediaservicesandapplications.<br />

In addition to high-speed data, the<br />

threetechnologiespromiselowacquisition<br />

costs due to their standardsbased<br />

equipment, which will encouragecompetitionbetweenmanufacturers<br />

and improve the ability of networkstoenhanceinvestmentreturns.<br />

The technologies are at different<br />

stagesofdevelopment.SeveralCDMA<br />

44


Mobile convergence<br />

1xEV-DO handsets and cellular gateways<br />

are already available to operators.Thestandardisevolvingandthe<br />

next release termed ‘EV-DO Rev A’,<br />

that will commence carrier testing in<br />

2006, will enhance quality of service<br />

for low latency applications such as<br />

Push-to-X services, instant messaging,fullmultimediacontentandinteractive<br />

gaming. HSDPA trials are<br />

underway now with networks in<br />

Europe planning launches this year,<br />

withmomentumbuildingin2006/7.<br />

WiMAXequipmentiscurrentlybeing<br />

installed to lower the cost of fixed<br />

backhaul services. Trials are now<br />

starting for the next generation of<br />

WiMAXstandardstermed‘revisionE’,<br />

thatwillextendthetechnologytosupport<br />

data and voice mobility.<br />

Commercialmarketlaunchisexpectedin2006/07.Theseservicescanbe<br />

extendedbeyondthehomeandenterpriseasmobiledevicesthatarecompliant<br />

with ‘revision E’ standards for<br />

transmission equipment become<br />

availablein2007andbeyond.<br />

Thelaunchofnewhigh-speedservices<br />

will gather pace over the next 12-18<br />

months.Interestwillbedrivenbyconsumer<br />

demand, demonstrated by<br />

fixed-line broadband, for high-speed<br />

dataservicesandthemotivatingeffect<br />

ofcompetition.<br />

Businessplanning<br />

Attheheartofconcernsoverconvergenceliesflexibility.Theeaseofprovisioning<br />

high-speed wireless networks<br />

removes the traditional boundaries<br />

thatrequireacustomertohavedifferentcontractsformobile,ISPandlandline<br />

services. This development will<br />

havealiberatingeffectonthemarket<br />

– there is no doubt that competition<br />

willencouragecompaniestoinvestin<br />

newtechnologiestoprotectandgrow<br />

subscribernumbers.<br />

NewVoIPcompaniesareaconcernfor<br />

traditional networks but it’s unlikely<br />

that any one sector of the telecoms<br />

market will secure clear dominance.<br />

However, success can be achieved<br />

throughastuteassessmentsofservice<br />

requirements, coupled with flexible<br />

servicepackagesandtariffs.Atthetop<br />

endofthescalewillbeaservicelevel<br />

thatprovides‘onenumber’communicationsencompassingallacustomer’s<br />

requirements.<br />

Individual products can also be marketed,<br />

from broadband through to<br />

voiceoverIPandmobilepackages.It<br />

is likely that major fixed and mobile<br />

brandswithlargenumbersofexisting<br />

subscriberswillpushhardtoprovide<br />

‘one number’ services. This will<br />

become a highly competitive front as<br />

thenewhigh-speeddatatechnologies<br />

comeon-stream.<br />

Constructivedevelopments<br />

Convergenceisdramaticallychanging<br />

thetelecomsmarketandmobile,fixed<br />

andISPplayersfaceaperiodofuncertainty.<br />

However, while it is understandable,<br />

given the level of change,<br />

that industry observers refer to the<br />

‘destruction’ of traditional modes of<br />

business. Astute risk assessment,<br />

though,alongwithin-depthcustomer<br />

profilingcanmitigateinvestmentrisk.<br />

Moreover,asIPtechnologyprovidesa<br />

modular investment option, companiescanscalequicklytomeetchanges<br />

in service demand and to counter<br />

competitoractivity.<br />

It is a cliché that challenge brings<br />

opportunity, but the statement certainlyappliestotechnicalconvergence<br />

that, combined with the progress of<br />

digitisation, brings unprecedented<br />

opportunity for telecoms companies<br />

to provide a new product that consumers<br />

have already shown they are<br />

keen to utilise. Indeed, networks can<br />

create new ways to deepen customer<br />

loyalty,attractnewcustomers,reduce<br />

churnandrealisenewsourcesofrevenue.<br />

Convergence provides creative freedomforcontentandmediaownersto<br />

develop new ways to distribute their<br />

products.Thisnewcycleofinnovation<br />

may well exceed that achieved at the<br />

startoftheInternetrevolution.<br />

Convergence is also having a major<br />

impactonsociety.Peoplewillcommunicate,<br />

interact and collaborate on<br />

personaldigitalcontentcustomisedto<br />

personal preferences, location, circumstances<br />

and availability. Vehicles<br />

andtheiroccupantswillcommunicate<br />

with the world they travel through<br />

keeping them safe, informed and<br />

entertained.<br />

Convergence will also have a liberatingeffectonproductivityandefficiency.<br />

Executives will access fully functioningmobileofficesthatprovidethe<br />

sameuserexperienceasafixed,officebased,connection.Theywillbeableto<br />

communicatewithcolleaguesthrough<br />

voice, video and dedicated collaboration<br />

applications that provide the<br />

scopetoachievemoreinlesstime.Itis<br />

alsohavingamajorimpactinstreamliningbusinessbysupportingubiqui-<br />

tousaccesstodata,andbyintroducing<br />

newwaystosense,monitorandcontrol<br />

the physical world to enhance<br />

supply chains and make manufacturingprocessesmoreefficient.<br />

The impact of convergence suggests<br />

that the ‘destruction’ of traditional<br />

businessmodelsinthetelecomsmarketwillhavealiberatingeffect.Itconstructs<br />

a new platform to create and<br />

market products, attract and retain<br />

customers, and apply technology to<br />

transform the way people communicate<br />

to make their lives easier. That,<br />

after all, is the goal of technology<br />

innovators.<br />

An insight into<br />

the future!<br />

You are a decision<br />

maker;<br />

You understand your<br />

business;<br />

Do you understand<br />

how ICT affect the<br />

markets the countries<br />

and the people you<br />

serve<br />

Gain insight into how<br />

ICT leaders see the<br />

future.<br />

<strong>Connect</strong>-<strong>World</strong>,<br />

The Decision Makers’<br />

Forum for ICT Driven<br />

Development,<br />

brings you the thoughts<br />

and opinions of<br />

leaders from<br />

around the globe,their<br />

personal assessment of<br />

the issues that drive<br />

the ICT revolution and<br />

change the lives<br />

of us all.<br />

46


Mobile value-added services<br />

Voice-based value-added services: delivering on their<br />

promises<br />

by Marshall Kavesh, co-Founder, Chairman and CEO, European Computer Telecoms Group (ECT)<br />

Voice-basedvalue-addedservicesareincreasinglypresentinourlives.Customisedringbacktones,numberportability,hotline-likeservicenumbersarebutafewoftheservices<br />

readilyavailablethroughoutpartsofEurope.Mobileofficeservicesgiveusersmanyof<br />

an office’s fixed-line features – switchboard attendant services, enterprise numbering<br />

plansandcallforwarding–throughamobilephone.Newer,web-drivenvideoservices<br />

<strong>include</strong>mobilevideoconferencingandvideomail.Telecomprovidersexpectthesenew<br />

serviceswillgenerateanewrevenuegrowthwave.<br />

Marshall Kavesh is ECT’s Board Chairman, CEO and one of its three founders. Together with Hans<br />

Huber,thecompany’sCTO,hedevelopedthebasisforECT’snext-generationswitchingtechnology.Dr<br />

KaveshpreviouslyfoundedRedShepherdSoftwareGmbH,whichdeveloped,amongothers,adatabase<br />

systemtoadministerallofSiemens’Hicomproducts,aswellasaSalesAdministrationSystem.Heset<br />

upatranslationservicecalledRedShepherdTranslationsGmbH,whichspecialisesintechnicaltranslationsandsoftwarelocalisationinover20languagesanddoesworkforavarietyofcompanies,includingSiemens,Oracle,DeTeWeandSoftek.Beforethat,hedesignedsystemsoftwareforIBMandSiemens,<br />

and developed CTI systems based on technologies created by Natural Microsystems, Aculab und<br />

Dialogic.<br />

Marshall Kavesh earned a PhD in Social System Sciences from the Wharton School of Business in<br />

Philadelphia,Pennsylvania,andcontinuedwithpostdoctoralstudiesinMathematicalLogicatLudwig-<br />

MaximilianUniversityinMunich.HealsohasaMasterofArts(MA)degreeinGermanicLanguagesand<br />

Literatures..<br />

Voice-based value-added services are<br />

everywhere you look and anywhere<br />

you go these days. They are a major<br />

success for operators and carriers<br />

aroundtheworld.Voice-basedvalueadded<br />

services are also increasingly<br />

omnipresentinthedailylivesofboth<br />

consumers and businesses. One way<br />

oranother,theaverageconsumerregularly<br />

comes into contact with voicebasedvalue-addedservices.<br />

There are consumers who close their<br />

eyestomobiletelephonyanditsvast<br />

rangeofservices,butformostvoicebased<br />

value-added services, it would<br />

simplify and strongly enhance countlessareasoftheirlivesathomeandat<br />

work.<br />

Voice-based value-added services<br />

meet crucial challenges that private<br />

customersandbusiness-worldclients<br />

alike pose to carriers and other telecomcompaniesandtothecompanies<br />

that supply them. These days, consumers<br />

expect customised, individualised<br />

products and services. They<br />

want to tailor or select the hardware<br />

and software features that turn a<br />

mobile phone into their unique<br />

mobile.Forconsumers,themorepersonalised<br />

a product or service is, the<br />

better.<br />

Ring-backtones<br />

Infewareasisthistrendmoreprevalent<br />

than in mobile telephony.<br />

Services such as the ring-back tone<br />

provide consumers with customisation<br />

and individuality. Let us look at<br />

the ring-back tone. For close to 100<br />

years, callers have heard the same<br />

monotonous ringing sound while<br />

waitingforthereceivingpartytopick<br />

up.Withcustomisedring-backtones,<br />

mobile subscribers can now use just<br />

about any sound file in place of the<br />

traditionalring-backtone.<br />

Using this service, subscribers can<br />

customise the ring-back tone that a<br />

caller hears as a call is being set up.<br />

Thattonecanbeacurrentchart-toppingpopsong,ajokeorevenavoice<br />

message. Moreover, ring-back tone<br />

subscribers can fine-tune their ringbacktones,customisingtonesforindividualcallersorcallergroups.<br />

When discretion is important, the<br />

ring-back tone offers an important<br />

advantage – a caller cannot identify<br />

thesubscriber’slocationsince,instead<br />

ofastandardnationalring-backtone<br />

that gives away the caller’s whereabouts,sheorhehearsthecustomised<br />

ring-back tone. In addition, the ringbacktoneisausefulwaytochannela<br />

company’s advertisements. Over the<br />

pastfewyears,thisvoice-basedvalueaddedservicehassoaredinpopularity.<br />

Millions of mobile users across<br />

Europe, from Scandinavia to Turkey,<br />

are using the ring-back tone service,<br />

which has emerged as a major revenue<br />

maker for carriers across the<br />

continent.<br />

Conferencing<br />

Another voice-based value-added<br />

service, conferencing, meanwhile,<br />

erasesalltypesofboundariesandbar-<br />

47


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Mobile value-added services<br />

riers that distance and time zones<br />

used to create for international companies<br />

and their employees. These<br />

days,acompany’sboardcan‘convene’<br />

viateleconferencingwithouthavingto<br />

flyaroundtheworld.Generally,voicebased<br />

services, such as mobile office<br />

and conferencing, add an entirely<br />

new,previouslyunimaginable,dimensionofmobilityandmobileavailability<br />

– a key benefit in an increasingly<br />

fast-pacedandfluctuatingglobalbusinessenvironment.<br />

Mobile office provides a user with a<br />

complete range of his or her office’s<br />

fixed-line features – switchboard<br />

attendant services, enterprise numbering<br />

plans and call-handling features<br />

such as call forwarding –<br />

through a mobile phone. As a result,<br />

userscan,inessence,taketheiroffices<br />

withthemwherevertheygo.<br />

From a carrier’s or service provider’s<br />

perspective,mobileoffice,afairlynew<br />

service, and conferencing hold enormouspotentialfornewbusiness,since<br />

they can enter entirely new markets<br />

andgeneratebusinessbyofferingthis<br />

attractiveservicetobusinessclientsat<br />

atimewhenmobilityandglobalavailabilityareatapremium.<br />

Numberportabilityandservice<br />

numbers<br />

Twootherservicesthatmaynotcome<br />

to mind immediately, but which<br />

stronglyaffectthelivesofmanymodern-day<br />

consumers, are number<br />

portability and service numbers.<br />

Given the growing number of mobile<br />

phone users, changes in European<br />

regulations and increasing competitionamongoperatorsforsubscribers,<br />

the ability to switch operators while<br />

keeping the ‘old’ number is increasinglyimportanttomanymobileusers.<br />

Europeanfixed-lineandmobilecarriers<br />

are required to provide number<br />

portability,aservicethatletsthecustomer<br />

keep the same number when<br />

switching providers. Special number<br />

portability applications provide this<br />

service.<br />

IfyouhaveeverwonderedhowquicklypollresultsonaTVshowaregenerated,looknofurtherthantelevoting,<br />

avoice-basedvalue-addedservicethat<br />

allows calls from around the country<br />

oreventhecontinenttobecomputed.<br />

Televotingusestheverysameservice<br />

numbertechnologyasthehotlinesyou<br />

call to resolve a technical problem<br />

with your PC or to book an airline<br />

flight by phone. Over the last few<br />

years,themarketforintelligentservice-number<br />

solutions has grown significantly,andithasnowemergedas<br />

themostimportantrevenuesourcefor<br />

European carriers and service<br />

providers,withfurthergrowthexpecteddowntheroad.<br />

Today, intelligent service-number<br />

solutionsmakeiteasierforcallersto<br />

reachdirectlythepersontheyactually<br />

want to reach in a company.<br />

Consequently, service-numbers have<br />

emergedasanimportantandeffective<br />

instrument in customer relationship<br />

management. They allow users to<br />

strengthentheirrelationshipwithnew<br />

and current customers. Complex and<br />

advancedtechnologicalstructuresare<br />

requiredtomakesuchahotlinehappenandmakeitrunsmoothly.<br />

"The advent of voicebased<br />

value-added<br />

services has provided,<br />

and still provides, a<br />

great stimulus, a big<br />

push, for mobile<br />

operators, providers<br />

and the developers of<br />

solutions."<br />

3Gvideomail<br />

Among the latest cutting-edge developmentsintheindustryare3Gvideo<br />

mail and other related video applications.<br />

These applications offer<br />

advanced video solutions with television-like<br />

quality. Unanswered calls<br />

aredirectedtothevideomailservice,<br />

whichgivethecalleranopportunityto<br />

recordavideomessage.<br />

Theabove-mentionedconferencingis<br />

nowalsoavailablewithvideo,providing<br />

business users and individuals<br />

with an attractive new service. Using<br />

mobile video conferencing, business<br />

conference participants on the move<br />

can see each other no matter where<br />

theyarelocated.<br />

Nottoolongago,thesetypesofapplications<br />

were strictly limited to wireline<br />

communications systems. The<br />

technicalpossibilitiesandthecircleof<br />

potentialuserswere,therefore,limited.<br />

The emergence of the Universal<br />

Mobile Telecommunications System<br />

(UMTS)hasdrasticallychangedthat.<br />

Now used in numerous countries,<br />

UMTShasgeneratedvastnewpoten-<br />

tialformobileoperatorsandthepri-<br />

vateandbusinessconsumerswhouse<br />

theseservices.<br />

The implementation of UMTS is just<br />

oneofthemajorinvestmentsthatcarriers<br />

have made in this important<br />

upcoming market. Deregulation in<br />

most countries has helped drive the<br />

industry’sgrowth.Asaresult,numerous<br />

new services have appeared, and<br />

others will follow over the next few<br />

yearsasnetworkstructuresandbandwidth<br />

availability improves. In additiontowhatisalreadyavailable,there<br />

willbeahostofexcitingandinnovative<br />

new voice-based value-added<br />

services.<br />

www<br />

Alloftoday’svoice-basedvalue-added<br />

servicesgohand-in-handwithanother<br />

major technological development<br />

thatisnowsuchacrucialpartofour<br />

life: the <strong>World</strong> Wide Web. So much<br />

dependsupontheworldofcyberspace<br />

these days, and just as the web has<br />

simplifiedmanyaspectsofourlife,it<br />

is also simplifying the use of voicebased<br />

services. Administration, configuration,<br />

and customisation of<br />

value-added services can all be done<br />

anywhere on the web in a few easy<br />

steps.<br />

The advent of voice-based valueaddedserviceshasprovided,andstill<br />

provides,agreatstimulus,abigpush,<br />

for mobile operators, providers and<br />

the developers of solutions. The<br />

increasing maturity of the mobile<br />

market means there are less growth<br />

andlessmoneytobemadewithsimple<br />

telephony. Over the last decade,<br />

this has meant that mobile players<br />

needtogeneratenewrevenuestreams<br />

to compensate for weaker voice revenues,andvalue-addedservicesoffer<br />

thatpotential.<br />

Private consumers and business<br />

clients in Europe and other parts of<br />

the world have responded very<br />

favourably to the vast and diverse<br />

range of voice-based value-added<br />

servicesmadeavailabletothem.This<br />

hasbeentrueinmostindividualtelecoms<br />

markets, especially in highly<br />

competitive regions, and to the telecomsindustryasawhole.<br />

Undoubtedly,therearevastopportunities<br />

for voice-based value-added<br />

services, and they will continue to<br />

influence strongly, and simplify, our<br />

lives.<br />

49


Mobile telepnony<br />

Mobile in Botswana – the development edge<br />

by José António Ferreira, CEO, Mascom Wireless, Botswana<br />

Botswana’s mobile penetration is relatively high for Africa. Internet usage is low,<br />

althoughthelatentdemandishigh.Internetgrowthislimitedbyhighprices,limited<br />

access,lowPCpenetration,lackofelectricityinruralregionsandlowtechnicalliteracy.<br />

Although VoIP is officially banned, Botswana has many registered Skype users. The<br />

Botswana Telecommunications Authority is now planning to liberalise and create an<br />

open,competitivemarketthatshouldpavethewayforIPbasedinfrastructureandsolutionsprovidersinBotswana.<br />

JoséAntónioFerreiraistheChiefExecutiveOfficerofMascomWireless,Botswana.Heisamemberof<br />

the ICT Consultative Council, chaired by the Minister of Communications, Science and Technology.<br />

Previously,asHeadofCommercialandMarketingatMascomWireless,MrFerreirawasresponsible<br />

forthelaunchofprepaidandSMSserviceinthecountry.AtPortugalTelecomformorethan20years,<br />

JoséFerreira,wasresponsibleforseveralfixedandmobileareasfortheoperatorinPortugal,Guinea<br />

BissauandBotswana.<br />

Botswana is, for those who have forgottentheirgeographylessons,alandlockedcountryintheSouthernAfrica<br />

and one of the largest producers of<br />

diamondsinworld.TheGDPpercapita<br />

is roughly US$3,000-3,500 per<br />

year,whichishigherthanoursouthern<br />

neighbour, South Africa. It is<br />

about 1/10 of the GDP per capita in<br />

many Western European countries,<br />

but some 10 times higher than some<br />

countries in Southern and Eastern<br />

Africa. Its distribution of income is<br />

amongthemostunevenintheworld.<br />

Botswana has been severely hit by<br />

HIV/AIDS.Officialestimatesindicate<br />

that almost one in three adults<br />

between 16 and 49 years, the most<br />

‘productive’ age group, is HIV-positive.FightingHIV/AIDSisatoppriority<br />

for government, communities,<br />

businessesandcitizensinthecountry.<br />

Botswana, however, is known for its<br />

political and macro-economic stability.<br />

Democratic elections have been<br />

heldsinceindependencefromBritain<br />

in 1966. The overall growth in the<br />

economyhasbeensome5-6percent<br />

in real terms over the last decade.<br />

Moreover, Botswana ranks amongst<br />

theleastcorruptcountries.<br />

All this helps to explain the development<br />

of the ICT sector thus far in<br />

Botswanaandtoassesstheprospects<br />

forthesectorinthefuture.<br />

TheICTsectorinBotswana–<br />

diagnosisandpossiblecure<br />

(whereneeded)<br />

Currently, the telecommunications<br />

industryinBotswanaconsistsof:<br />

- The Botswana Telecommunications<br />

Corporation (BTC), a state-owned<br />

fixedoperatorwhichhadamonopoly<br />

on telecommunications services until<br />

thelate1990s;<br />

-Twomobileoperators,Mascomand<br />

Orange, which compete on equal<br />

termstosupplymobilevoiceanddata<br />

services;<br />

-11licensedpublicdataserviceoperators<br />

and 11 licensed private network<br />

operators. Public data service<br />

providerscanprovidetheirowninfrastructure,<br />

both national and international,andleaselinestoISPsandprivatedatanetworkoperators;<br />

- 22 licensed ISPs, which <strong>include</strong><br />

Botsnet, a subsidiary of BTC, UUNet<br />

Botswana, a subsidiary of MCI and<br />

BytesTechnologyGroup.Manyofthe<br />

ISPs also operate as data network<br />

service and/or infrastructure<br />

providers.<br />

The regulatory body, Botswana<br />

TelecommunicationsAuthority(BTA),<br />

was set up in 1996 when the current<br />

Telecommunications Act came into<br />

force.AnewICTpolicyisunderdevelopment,<br />

and amended sector legislation<br />

is expected to take into account<br />

technological and market convergence.<br />

In past years, the number of mobile<br />

subscribershasgrownstronglywhilst<br />

the number of fixed line services has<br />

remained rather static. Mobile penetration<br />

overtook fixed penetration in<br />

year2000(Figure1).<br />

ByFebruary2005,mobilesubscribers<br />

had increased to some 569,000 and<br />

50


Mobile telepnony<br />

claim there are now between 20,000<br />

and 40,000 Internet subscribers in<br />

Botswana, split roughly equally<br />

betweenthecorporatemarketandthe<br />

‘massmarket’ofconsumersandsmall<br />

businesses.<br />

A number of indicators suggest that<br />

latent demand for Internet is high.<br />

Botswana has a high level of literacy<br />

and many people with international<br />

activities; nevertheless, a number of<br />

factors constrain Internet usage<br />

growth.<br />

Short-termgrowthconstraints<strong>include</strong>:<br />

-ThehighpriceofglobalInternetconnectivity;<br />

Figure 1: Development of number of subscribers since 1999. Source: Botswana<br />

Telecommunications Authority (BTA) (Figures are for end of March each year).<br />

the number of fixed subscribers was<br />

about136,000,accordingtotheBTA.<br />

This implies a mobile penetration of<br />

around34percentandafixedpenetration<br />

of some eight per cent. The<br />

mobile penetration puts Botswana<br />

aheadofmostotherAfricancountries,<br />

butwayshortofmostcountriesinthe<br />

EU.<br />

TakingintoaccounttheGDPpercapitaandcomparingthemobilepenetrationtosimilarcountriesinmacro-economicterms,revealsthatweareprettymuchinthemiddleofthebunch,as<br />

Figure 2 shows. It must, though, be<br />

remembered that Botswana is an<br />

extremelysparselypopulatedcountry<br />

withthanthreeinhabitantsperkm.<br />

Fixedlinepenetrationgivesaslightly<br />

different picture. Botswana has not<br />

performed as well in increasing the<br />

fixed penetration given the country’s<br />

overall economic situation and businessactivity.AccordingtoITUstatistics,werankwellbelowaveragewhen<br />

compared to countries with similar<br />

GDPpercapita.<br />

Lowfixedlinepenetrationisnotnecessarily<br />

a problem when it comes to<br />

voice services, since mobile penetration<br />

is so relatively high, but it does<br />

hinder public access to Internet and<br />

web-basedinformationservices.<br />

Currently, Internet penetration is<br />

much lower than what could be<br />

expected. Levels of Internet use in<br />

Botswana are low compared with<br />

othercountrieswithsimilarGDPper<br />

head (Figure 4). ITU data from two<br />

years ago indicates that there were<br />

some 60,000 Internet users in<br />

Botswana. Internet service providers<br />

- Limited availability of global<br />

Internet connectivity. Today, file<br />

transfers from foreign servers are<br />

oftenaslowas2-3Kbpersecond,but<br />

upgradesoftheinternationalfacilities<br />

areinprogress;<br />

-Highcostsofenduseraccess–high<br />

usage residential users often pay 100<br />

per month or more including subscriptiontotheISP,usingeitherPSTN<br />

dial-up service or fixed wireless<br />

access, rebalancing of prices to cost<br />

willstrengthenthisconstraint;<br />

-ThelackofanInternetexchangein<br />

Botswana means that a high proportionofemailsareroutedinternationally,usingscarceandexpensiveglobal<br />

Internetconnectivity;<br />

-Thelowlevelsoffixedlinepenetration.<br />

Long-term growth is constrained by<br />

otherfactorsincluding:<br />

-LowPCpenetration;<br />

- Lack of electricity to power PCs in<br />

manyruralareahomes;<br />

-Lowlevelsoflocalcontent;<br />

-LowITandInternetliteracy.<br />

Figure 2: A benchmark of mobile penetration in Botswana. Source: Ovum based on ITU statistics.<br />

Currently,datanetworkoperatorsand<br />

ISPs are banned, through a clause in<br />

theirlicences,fromusingtheInternet<br />

tocarryvoicecallseithernationallyor<br />

internationally. However, there are<br />

clear indications that end users are<br />

ignoring this ban and making VoIP<br />

callsanyway.Trafficstatisticssupport<br />

thishypothesisandasignificantnumber<br />

of Botswana’s Internet users are<br />

registeredusersofSkype.Itisestimatedthat10-15percentoftheoutgoing<br />

international traffic already is VoIP,<br />

which, if accurate, raises concerns<br />

52


Mobile telepnony<br />

substantial investment considering<br />

the small market in Botswana. There<br />

is optimism, however, about the take<br />

upofGPRSandEDGE-basedservices.<br />

Acompellingofferandpricingmodel,<br />

inaccordancewiththelocaleconomy,<br />

willcontributetothewideravailabilityofservices,andpromotethespread<br />

of the Internet and ICT among the<br />

population – which is one of the pillarsofthecountry’s‘Vision2016’.<br />

Figure 3: A benchmark of fixed line penetration in Botswana. Source: Ovum based on ITU statistics.<br />

over what will happen when it is<br />

allowed.<br />

There is little doubt that IP-based<br />

providers could take a significant<br />

share of both international and<br />

nationaltrafficoncefullyliberalised.<br />

So,wheredowegonow<br />

Following a major study and public<br />

consultations,theBTAisnowformulating<br />

its final plan for liberalisation,<br />

which, once approved by parliament,<br />

willshapethestructureoftheindustry<br />

foryearstocome.Theplanistoliberaliseallmarketsegmentswithin12to<br />

18 months. Expectations are that it<br />

willleadtoafullyopenmarketmore<br />

competitive market to the benefit of<br />

users.<br />

First and foremost, it will be important<br />

to remove existing bottlenecks<br />

and allow competition on facilities<br />

and services that are currently<br />

monopolised. This <strong>include</strong>s, amongst<br />

others, allowing alternative international<br />

gateway providers using IPbasedtechnology.<br />

Amajorconcernisthelackofalternativesforinternationaltraffic.Thereis<br />

only one international gateway.<br />

Internationally, although the cost of<br />

capacityhascomedowntremendouslyoverthelastyears,thathasnotyet<br />

showninthewholesaleratesforinternational<br />

traffic in Botswana.<br />

Ultimately, the end users are losing<br />

fromthissituation.<br />

Therefore, once the plan for an open<br />

market has been approved, the path<br />

should be paved for IP-based infrastructure<br />

and solutions providers in<br />

Botswana, be it national or internationalservicesorboth.<br />

GPRSandEDGEarejustabouttobe<br />

launchedinBotswana;thiscalledfora<br />

We welcome you<br />

comments...<br />

If you have any<br />

comments or<br />

opinions about this<br />

issue’s theme, IP –<br />

Intelligent Positioning<br />

for the growth,<br />

as it affects Africa<br />

and the Middle East<br />

and beyond,<br />

we would like to hear<br />

from you.<br />

Send us your<br />

comments.<br />

Simply complete the<br />

reply card and fax it<br />

to our editorial team.<br />

Fax number:<br />

+44 20 7474 0900<br />

or send an email to:<br />

editorial@connect-world.com<br />

Figure 4: A benchmark of Internet penetration in Botswana. Source: Ovum based on ITU statistics.<br />

53


Mobile telephony<br />

What mobile telephony brings to Uganda<br />

by Noel Meier, CEO, MTN Uganda<br />

NinetypercentofUganda’s1,200,000telephonesaremobile.Sevenyearsago,fewer<br />

than 10 per cent of Ugandans had ever made a phone call. Today, access is available<br />

throughoutthecountryand,despitethelow,fivepercentpenetration,almost90per<br />

centofUganda’sinhabitantshaveaccesstoandusethesystem.Thisremarkableturnaroundisduemainlytowirelesstechnology.Today,thecompetitivemobileoperator,<br />

whichbeganoperationsjustsevenyearsago,isnowthesecondgreatestsingletaxpayer<br />

inUganda.<br />

Noel Meier is the Chief Executive Officer of MTN Uganda. He served previously as the CEO of MTN<br />

Swaziland,andheadedtheimplementationteamsthatestablishedMTN’sGSMoperationsinRwanda<br />

andUganda.ActingasCEOforbothoperations,MrMeierinitiatedthestartupprocessuntilhandover<br />

topermanentCEOappointees.HebeganhiscareeratMTNasRegionalGeneralManager,responsible<br />

foroperationsinKwaZulu-NatalandtheEasternCape.<br />

NoelMeierstartedhiscareerwiththeDepartmentofPosts&Telecommunicationswherehegaineda<br />

wealthofexperienceintheTelecommunicationsindustry.<br />

Ugandahasapproximately26million<br />

peopleandaGDPperCapitaofsome<br />

US$330. Its tele-density of five per<br />

cent is impressive given that it grew<br />

from0.2per100peoplein1998when<br />

itstelecomsectorwasliberalised.<br />

That mobile subscribers account for<br />

90percentofthe1,200,000connections<br />

highlights the importance of<br />

mobiletelephonyinUganda.<br />

The revolution in communications<br />

thathascutacrossAfrica,givingitthe<br />

reputation as the fastest growing<br />

mobilemarketintheworld,hastransformed<br />

Uganda, its people and their<br />

wayoflife,economically,sociallyand<br />

politically<br />

Sevenyearsago,nomorethan10per<br />

cent of Ugandans had ever made a<br />

call.Today,thereverseholds.<br />

Backthen,telecommunicationservices<br />

were only available, almost exclusively<br />

in urban areas of the country,<br />

whiletoday,allthe56districtsinthe<br />

countryhaveaccesstotelecomservicesthatmakeGSMcoverageavailable<br />

in70percentofthecountry.<br />

Although wire-line telecom services<br />

were available before 1998, access to<br />

serviceswasdifficultandthenumber<br />

of people waiting to get a connection<br />

was twice the number of those connected.<br />

Today, the many distribution<br />

pointssetupbymobileoperatorssell<br />

GSMSIMpacksacrossthecounter.<br />

ThegrowthofUganda’stelecommunicationsinrecentyearsisduepredominantly<br />

to mobile technology. Whilst<br />

the number of fixed line phones has<br />

grown45percentsince1998,toabout<br />

80,000 lines, mobile phones have<br />

grownalmost100percentperyearin<br />

the same period. In Uganda, mobile<br />

technology has an enormous advantagecomparedtofixedwirelineservices,giventheabilityofwirelesstechnology<br />

to reach remote populations<br />

with a smaller investment than landlinesystems.<br />

Thestrengthofmobilityand<br />

wireless<br />

The key to the success of mobile<br />

telephonyinUgandaliesinthewirelessnatureofthetechnology.Thishas<br />

spurred fast rollout of the services<br />

eventotheremotestpartsofthecountry.Lookingback,weseethatthelack<br />

of telecommunications growth that<br />

African countries faced during the<br />

monopoly era was due mainly to the<br />

high cost and difficulty of rolling out<br />

fixed wire-line services. Mobile technologyhaschangedallthis.<br />

Improvedpolicyandregulatoryenvironments<br />

and the focus of these on<br />

promoting competition have played<br />

an important role in the sector’s<br />

growth. Although mobile telephony<br />

wasintroducedinUgandain1994,by<br />

1998 the country only had about<br />

10,000 GSM subscribers. This was<br />

mainlybecausethehighpricesadopted<br />

by the, then, sole GSM operator<br />

kepttheserviceasapreserveofafew<br />

rich. Increased liberalisation, which<br />

broughtintwoadditionalGSMlicenses,ledtoincreasedcompetitioninthe<br />

market,increasedcoverageandlower<br />

prices.Acquisitioncostsfellfromover<br />

US$1,500tolessthanUS$60includingthecostofthehandset.Similarly,<br />

astheresultofcompetition,retailuser<br />

tariffshavefallensignificantly.Today<br />

Uganda is probably the country with<br />

54


Mobile telephony<br />

the lowest tariffs anywhereontheAfricancontinent.<br />

Equally important has<br />

been the increase in<br />

Uganda’s public access<br />

services. Initially, the<br />

telecoms operators’<br />

Universal Access obligations<br />

spurred the growth<br />

of public access.<br />

Subsequently public<br />

access evolved into a<br />

small-investoropportunityasindividualUgandans<br />

begantoofferpaidpublic<br />

access using their own<br />

phones.<br />

The country now has an estimated<br />

50,000publicaccesspointslocatedin<br />

grocery stores, barbershops and on<br />

the streets. GSM mobile phones providemostofthisaccessand,onaverage,eachservestento50usersaday,<br />

dependingonthelocation.<br />

Mobiletelephonybenefitsin<br />

Uganda<br />

MobiletelephonyhasenabledUganda<br />

andothercountriestoleapfrogseveral<br />

generations of communications technology.Today,Ugandanshaveaccess<br />

to services that previously were the<br />

exclusivepreserveofthosewithaccess<br />

tofixedlineservices.<br />

The financing of telephone service<br />

rolloutinruralareaswasonceconsideredwaybeyondthemeansofdevelopingcountriessuchasUganda.Asan<br />

example,thecompetitivemobileoperator’slicenceinUgandarequireditto<br />

install89,000linesinafive-yearperiodbeginningin1998.Atthetime,all<br />

thoughtthisaformidable,difficultto<br />

achieve, target. They based this<br />

assumption on the fixed wire-line<br />

model.<br />

Taking a developmental approach,<br />

using international development<br />

grantsandloans,wasthoughttheonly<br />

waytoaddressthechallengesofanatural<br />

monopoly and of developing a<br />

nationwidetelecommunicationsinfrastructure.<br />

However, liberalisation,<br />

based upon a progressive regulatory<br />

regime, stimulated a mobile explosion.Todate,themarkethasslightly<br />

over 1,000,000 mobile users, 65 per<br />

cent of these are on the competitive<br />

operator’snetworkalone.<br />

Mobile Telephony has had a great<br />

impactonUgandansystemsofgovernance.<br />

Because of widespread GSM<br />

Figure 1: Improved policy and regulation, as well as higher competition, have<br />

played an important role in the sector’s growth.<br />

deployment, e-Government is rapidly<br />

becoming a reality. The country’s<br />

recentlyapprovedICTpolicypointsto<br />

e-Governmentasaspecificgoaltobe<br />

achieved in addition to the goal of<br />

effectively employing ICT to better<br />

Uganda’seconomicsituation.<br />

Mobiletechnology<br />

The economic success that Uganda<br />

hasenjoyed,withGDPgrowthofover<br />

fivepercentperannum,mightnever<br />

havebeenrealised,mightneverhave<br />

reached the same level, without the<br />

exponential growth of telecommunication<br />

services made possible by<br />

mobile technology. Indeed, the competitive<br />

mobile operator, a company<br />

thatstartedoperationsinUgandajust<br />

seven years ago, is now the second<br />

greatestsingletaxpayerinUganda.<br />

"The financing of telephone<br />

service rollout in<br />

rural areas was once<br />

considered way beyond<br />

the means of developing<br />

countries such as<br />

Uganda."<br />

Businesses of all sizes comprise the<br />

country’s diverse economic sectors<br />

and mobile telephony has connected<br />

them all, from the small farm dealer<br />

checking the price of produce, to the<br />

stranded fisherman contacting the<br />

collectionvanathisdock,tobusinessmen<br />

negotiating off-shore investments,<br />

and all have benefited as a<br />

result.<br />

Social interaction in Uganda has not<br />

been the same since the advent of<br />

mobile telephony. In a land where<br />

social bonds are highly regarded,<br />

accessible and affordable<br />

communication, a text<br />

messaging or a quick<br />

phone call, is a welcome<br />

additionanyday.<br />

Futurechallenges<br />

In spite of its rapid<br />

growthinmobiletelephony,Uganda’sfivepercent<br />

mobile penetration lags<br />

behind its neighbours<br />

Kenya with 12 per cent,<br />

Tanzania with 10 per<br />

cent, and many other<br />

African countries. Still<br />

Uganda’s prices are the lowest in the<br />

EastAfricanregionandsteadygrowth<br />

isexpected.<br />

Uganda’spolicymakerswanttokeep<br />

increasingcompetition,hencethenew<br />

telecompolicy,upontheexpiryofthe<br />

initialexclusivityperiodinJuly2005,<br />

willprobablyaimhighandcallforthe<br />

growth of tele-density to 20 per cent<br />

by the year 2010. Mobile and fixed<br />

wirelesstelephonyseemtobetheonly<br />

ways to meet such an ambitious target,<br />

given the time and investment<br />

neededtorolloutwirelinecapacityin<br />

ruralareas.<br />

Thereare,however,certainmacrofactors<br />

holding back the growth in<br />

demandthatneedtobeaddressedto<br />

meetUganda’sambitiousgoals.<br />

The high taxes charged users for<br />

mobile services are among the most<br />

important inhibiting factors. These<br />

taxes, including a 12 per cent excise<br />

dutychargedonlyformobileservices,<br />

totalapproximately30percent.Low<br />

demand is also a direct result of the<br />

country’sUS$330percapitaincome.<br />

ThelowpenetrationofICT,including<br />

thelackofresidentialPCs,greatlylimits<br />

the use of enhanced non-voice<br />

mobiletelephonyservices.<br />

Mobiletechnologycandeliversomeof<br />

these services and are being consideredbymobileserviceproviderswho<br />

will soon introduce GPRS services to<br />

both the pre-paid and post-paid customerbase.Mobileoperatorsarealso<br />

driving the convergence of fixed and<br />

mobiletelephonybyintroducingmore<br />

advancedtechnologiessuchasCDMA<br />

andfibreopticforconnectionstothe<br />

network.<br />

55


Mobile telephony<br />

the lowest tariffs anywhereontheAfricancontinent.<br />

Equally important has<br />

been the increase in<br />

Uganda’s public access<br />

services. Initially, the<br />

telecoms operators’<br />

Universal Access obligations<br />

spurred the growth<br />

of public access.<br />

Subsequently public<br />

access evolved into a<br />

small-investoropportunityasindividualUgandans<br />

begantoofferpaidpublic<br />

access using their own<br />

phones.<br />

The country now has an estimated<br />

50,000publicaccesspointslocatedin<br />

grocery stores, barbershops and on<br />

the streets. GSM mobile phones providemostofthisaccessand,onaverage,eachservestento50usersaday,<br />

dependingonthelocation.<br />

Mobiletelephonybenefitsin<br />

Uganda<br />

MobiletelephonyhasenabledUganda<br />

andothercountriestoleapfrogseveral<br />

generations of communications technology.Today,Ugandanshaveaccess<br />

to services that previously were the<br />

exclusivepreserveofthosewithaccess<br />

tofixedlineservices.<br />

The financing of telephone service<br />

rolloutinruralareaswasonceconsideredwaybeyondthemeansofdevelopingcountriessuchasUganda.Asan<br />

example,thecompetitivemobileoperator’slicenceinUgandarequireditto<br />

install89,000linesinafive-yearperiodbeginningin1998.Atthetime,all<br />

thoughtthisaformidable,difficultto<br />

achieve, target. They based this<br />

assumption on the fixed wire-line<br />

model.<br />

Taking a developmental approach,<br />

using international development<br />

grantsandloans,wasthoughttheonly<br />

waytoaddressthechallengesofanatural<br />

monopoly and of developing a<br />

nationwidetelecommunicationsinfrastructure.<br />

However, liberalisation,<br />

based upon a progressive regulatory<br />

regime, stimulated a mobile explosion.Todate,themarkethasslightly<br />

over 1,000,000 mobile users, 65 per<br />

cent of these are on the competitive<br />

operator’snetworkalone.<br />

Mobile Telephony has had a great<br />

impactonUgandansystemsofgovernance.<br />

Because of widespread GSM<br />

Figure 1: Improved policy and regulation, as well as higher competition, have<br />

played an important role in the sector’s growth.<br />

deployment, e-Government is rapidly<br />

becoming a reality. The country’s<br />

recentlyapprovedICTpolicypointsto<br />

e-Governmentasaspecificgoaltobe<br />

achieved in addition to the goal of<br />

effectively employing ICT to better<br />

Uganda’seconomicsituation.<br />

Mobiletechnology<br />

The economic success that Uganda<br />

hasenjoyed,withGDPgrowthofover<br />

fivepercentperannum,mightnever<br />

havebeenrealised,mightneverhave<br />

reached the same level, without the<br />

exponential growth of telecommunication<br />

services made possible by<br />

mobile technology. Indeed, the competitive<br />

mobile operator, a company<br />

thatstartedoperationsinUgandajust<br />

seven years ago, is now the second<br />

greatestsingletaxpayerinUganda.<br />

"The financing of telephone<br />

service rollout in<br />

rural areas was once<br />

considered way beyond<br />

the means of developing<br />

countries such as<br />

Uganda."<br />

Businesses of all sizes comprise the<br />

country’s diverse economic sectors<br />

and mobile telephony has connected<br />

them all, from the small farm dealer<br />

checking the price of produce, to the<br />

stranded fisherman contacting the<br />

collectionvanathisdock,tobusinessmen<br />

negotiating off-shore investments,<br />

and all have benefited as a<br />

result.<br />

Social interaction in Uganda has not<br />

been the same since the advent of<br />

mobile telephony. In a land where<br />

social bonds are highly regarded,<br />

accessible and affordable<br />

communication, a text<br />

messaging or a quick<br />

phone call, is a welcome<br />

additionanyday.<br />

Futurechallenges<br />

In spite of its rapid<br />

growthinmobiletelephony,Uganda’sfivepercent<br />

mobile penetration lags<br />

behind its neighbours<br />

Kenya with 12 per cent,<br />

Tanzania with 10 per<br />

cent, and many other<br />

African countries. Still<br />

Uganda’s prices are the lowest in the<br />

EastAfricanregionandsteadygrowth<br />

isexpected.<br />

Uganda’spolicymakerswanttokeep<br />

increasingcompetition,hencethenew<br />

telecompolicy,upontheexpiryofthe<br />

initialexclusivityperiodinJuly2005,<br />

willprobablyaimhighandcallforthe<br />

growth of tele-density to 20 per cent<br />

by the year 2010. Mobile and fixed<br />

wirelesstelephonyseemtobetheonly<br />

ways to meet such an ambitious target,<br />

given the time and investment<br />

neededtorolloutwirelinecapacityin<br />

ruralareas.<br />

Thereare,however,certainmacrofactors<br />

holding back the growth in<br />

demandthatneedtobeaddressedto<br />

meetUganda’sambitiousgoals.<br />

The high taxes charged users for<br />

mobile services are among the most<br />

important inhibiting factors. These<br />

taxes, including a 12 per cent excise<br />

dutychargedonlyformobileservices,<br />

totalapproximately30percent.Low<br />

demand is also a direct result of the<br />

country’sUS$330percapitaincome.<br />

ThelowpenetrationofICT,including<br />

thelackofresidentialPCs,greatlylimits<br />

the use of enhanced non-voice<br />

mobiletelephonyservices.<br />

Mobiletechnologycandeliversomeof<br />

these services and are being consideredbymobileserviceproviderswho<br />

will soon introduce GPRS services to<br />

both the pre-paid and post-paid customerbase.Mobileoperatorsarealso<br />

driving the convergence of fixed and<br />

mobiletelephonybyintroducingmore<br />

advancedtechnologiessuchasCDMA<br />

andfibreopticforconnectionstothe<br />

network.<br />

55


Business communications<br />

Positioning business for global commerce<br />

by Brian Day, Vice President, Carrier Voice and Multimedia, Nortel, Europe, Middle East and<br />

Africa<br />

Advanced Information and Communication Technology (ICT) has revolutionised the<br />

workplaceandmadeitmoreflexible.Twentyyearsago,officesrelieduponpaperfiles,<br />

memos,telephoneandexpensivehighlycentralisedsystems.Today,withlaptopcomputers,PDAs,mobilephones,widelyavailablefixedandwirelessbroadbandconnections<br />

andtheInternet,evenforvoice,aworkerathomeoronatripisbetterconnectedtohis<br />

workandcolleaguesthanmostworkerswereyearsagoatthecentraloffice.<br />

Atpresent,BrianDayisNortel’sVicePresidentresponsiblefortheCarrierVoiceandMultimediaportfoliobusinessinEurope,MiddleEastandAfrica.Previously,hewasresponsibleforproductmanagementofthecarrier-switchingportfolioinEurope,AsiaandLatinAmerica.MrDayhasworkedinNortel<br />

for20yearsinanumberofrolesrangingfromproductplanningtomarketing,workingwithNortel<br />

Networks’mobileandenterprisedivisions.<br />

Twentyyearsago,workerscommunicatedusingtelephonecalls,lettersand<br />

telexes.Faxes,curlingpiecesofpaper<br />

with indistinct text and hand-drawn<br />

diagrams, were the cutting edge of<br />

instantaneous business communication.<br />

Internal communications relied upon<br />

the ubiquitous interoffice memo.<br />

Documentswerestoredinpaperfolders<br />

and files circulated with a small<br />

slip to initial after you had read it.<br />

Typing was done in typing pools and<br />

computersresidedinresearchlaboratoriesordataprocessingdepartments<br />

that controlled what end users could<br />

or,usually,didnotdo.<br />

The available communications technologyimposedcertaintypesofmanagement<br />

structures. Centralised decision-making<br />

was hierarchical, with<br />

communication channelled through<br />

rigidpathsintheorganisation.<br />

The processes were long and drawnout,somanylocalpracticesdeveloped<br />

ineachpartofanylargeorganisation<br />

to enable business to continue on a<br />

day-to-daybasis.<br />

Once in place, those processes were<br />

largelystatic,evolvingataglacialrate.<br />

Newcomers who pointed out obvious<br />

inadequacies were told "we’ve always<br />

doneitlikethat".Thenewideaswere<br />

rejectedasbeing"toorisky",because<br />

following the current processes consumedalloftheavailableeffort.<br />

Innovations<br />

Slowly,thepenetrationofstandalone<br />

personalcommuters,followedbynetworked<br />

PCs, then internal email,<br />

shared file servers, external email,<br />

Internet and Intranet began to dissolve<br />

barriers that once seemed<br />

immovable.<br />

The innovations made it possible to<br />

challenge accepted organisational<br />

norms.Datawasmanagedandmanipulatedinwaysmorerelevanttoparticular<br />

groups. Communications channelsbecamemoreadhocandthebest<br />

companies learned how to use technology<br />

to reform their organisations<br />

continuously to meet new challenges<br />

and opportunities. Local teams felt<br />

empowered to create communication<br />

solutionsthatmettheirneeds,breakingfreefromcentralisedcontrol.<br />

Still,therewasadownside;freedomof<br />

choice also means freedom to make<br />

the wrong choice. As technology<br />

options multiplied, many organisations<br />

lost their way, as individual<br />

departments made unco-ordinated<br />

decisions on buying, implementing<br />

andusingcomputingandcommunications.<br />

Although some innovation<br />

flourished, extending the benefits to<br />

thewholeorganisationwashampered<br />

byincompatibilitiesbetweensystems,<br />

database structures and networking<br />

technologies.<br />

Waveofconvergence<br />

Eventually, all this was centralised<br />

again, but this time, it was different.<br />

First, users were reluctant to give up<br />

57


Business communications<br />

their freedom. Second, the marketplacehadforcedcompetitorstostandardise,<br />

so that even with different<br />

suppliers in different departments,<br />

incompatibleislandsoftechnologyno<br />

longerexisted.TelephonesandPABXs<br />

from different suppliers worked<br />

together,anyPCrananysoftwareand<br />

networking components could be<br />

selected upon price and performance<br />

ratherthanbrand.<br />

This was the first wave of convergence,<br />

and it was spectacularly successful<br />

in cutting costs and boosting<br />

performance,butfromtheenduser’s<br />

pointofview,therewerestilltwobig<br />

issuesunresolved.First,eachapplicationandservicewasstillisolatedfrom<br />

theothers.Anemailcontactlistcould<br />

notdialphonecalls.Aword-processing<br />

address database could not send<br />

emails. A website could not enable<br />

customers to call a contact centre. A<br />

PC could not play back voice mail<br />

messages.<br />

Thesecondissuewasavailability.The<br />

costofthehardwareandbandwidthto<br />

support separate networks and systems<br />

meant that people needed to<br />

work near the centralised hardware.<br />

Thosewhoworkedatalargeofficesite<br />

were well served, but those in small<br />

branches,workingathomeortravellingwerenot.<br />

Mobileandlaptop<br />

The next wave of convergence was<br />

much quicker. Only five years ago, a<br />

typicalmobileemployeehadamobile<br />

phone and a laptop PC. The mobile<br />

phonewassomewhatintegratedwith<br />

theofficenetwork,butthatwasabout<br />

all.<br />

Similarly, with dial-up networking,<br />

travellingemployeescouldconnectto<br />

the corporate network to collect and<br />

send emails, but large PowerPoint<br />

attachments had to wait until they<br />

returnedtotheoffice.<br />

Frequent business travellers found<br />

thattechnologicallimitationsnotonly<br />

affected them, but the work of their<br />

teamandofotherswhoneededtocontactthemforinformationorfastdecisions.<br />

Today, technology has transformed<br />

thewaymanagerswork.TheuseofIP<br />

and Ethernet for communications<br />

applications and services has freed<br />

communications from the tyranny of<br />

multiplenetworksandprovidedlevels<br />

of integration between applications<br />

unachievablejustfiveyearsago.<br />

Broadband is no longer restricted to<br />

majorcorporatesites;relativelyhighspeedconnectivityisnowavailableto<br />

home-basedworkers,tobranchoffice<br />

workers, to travelling workers in<br />

hotels, airports and convention centres.<br />

Travelling workers can now set up a<br />

securebroadbandIPconnectiontothe<br />

corporate network from most places<br />

and use an integrated VoIP and<br />

MultimediaSIPclientontheirlaptop<br />

to see which members of their teams<br />

areavailable,onthephoneoroutwith<br />

customers.<br />

They can send secure Instant<br />

Messages to address minor issues or<br />

set-upaVoIPphonecallwithasingle<br />

click. When they need to address a<br />

groupofpeoplequickly,anaudioor<br />

videoconferencebridgeisimmediately<br />

available. During the conference,<br />

they can refer to emails or download<br />

documents from the corporate<br />

Intranet.<br />

Whentheyarenotonline,urgentvoice<br />

calls or emails are directed to their<br />

smart-phone or PDA. In short, they<br />

can work in exactly the same way,<br />

irrespectiveofwheretheyarelocated.<br />

When travelling they can use previously<br />

dead time to make sure that<br />

theirworkdoesnotgrindtoahalt.<br />

Higherproductivity<br />

Widespread use of technology gives<br />

employeesmorechoiceoverwhenand<br />

howtheydotheirwork,andimproves<br />

their productivity. Many corporate<br />

workers are now permanently homebased.<br />

Therearesignificantbenefitsforboth<br />

employers and employees for these<br />

arrangements.Surveysofteleworkers<br />

showthat15percentreportimproved<br />

productivity and that 11 per cent are<br />

moresatisfiedwiththeirjobsthanthe<br />

overallworkforce.<br />

One Market Development manager<br />

explained the benefits like this: "for<br />

me, it’s the feeling you get when you<br />

candoeverythingyouneedto,talkto<br />

anyone you need to, from wherever<br />

youhappentobe,whenyourworking<br />

dayactuallystartsatnineandactually<br />

finishesatfive-thirty.<br />

“Not wasting time trying to get in<br />

touchwithpeople,orgetholdofinformation,meansyoucanconcentrateon<br />

the job in hand. And that, in turn,<br />

means you don’t have to put in the<br />

extrahourstofinishyourday’swork.I<br />

enjoymyjob,butwhenyoucanactuallyfinishontime,itfeelsreallyliberating,<br />

like somehow you’ve stolen<br />

someofyourlifeback."<br />

Significantsavings<br />

Ahome-basedworkforcecanbringbig<br />

realestatesavingstolargecompanies,<br />

andVoIPcanprovideadditional,very<br />

significant,savings.<br />

Governmentsarealsopromotingflexibleworking.SinceApril2003,allUK<br />

parentsofchildrenundersix,anddisabledchildrenunder18,havehadthe<br />

righttoapplytoworkflexibly,aright<br />

thatmustbefairlyconsideredbyany<br />

employer,andamovebeingreplicated<br />

throughout Europe and beyond. In<br />

Germany, employees of six months<br />

servicecanapplytoworkonaflexible<br />

basis.In1996,Hollandpassedlawsto<br />

encourage flexible working agreementsandseveralScandinaviancountriesaremovinginthesamedirection.<br />

Itisunderstandablethatsomeorganisationsseethisasjustonemoreregulatory<br />

stick with which to beat business.Many,though,believethattobe<br />

competitive in a globalised market a<br />

company must use this kind of technologyeffectively–orriskbeingovertakenbythosewhodo.<br />

Progresswillaccelerateoverthenext<br />

five years. Broadband will become<br />

more widespread and speeds will<br />

increase as costs come down. Fixed<br />

andmobilenetworkswillcontinueto<br />

converge. New wireless technologies<br />

suchasWi-Maxandfaster3Gmobile<br />

data with HSDPA will make it easier<br />

andcheapertoworkonline,irrespectiveoflocation.<br />

Despitetheinnovationoftoday’smultimedia<br />

products, we have barely<br />

scratchedthesurfacewhenitcomesto<br />

combining presence, instant messaging,VoIPandvideoconferencinginto<br />

specialised vertical applications for<br />

education, healthcare, retailers,<br />

banks, engineering and manufacturing<br />

industry. The possibilities are<br />

almostendless.<br />

More and more, business is about<br />

groupsofpeoplecollaboratingacross<br />

traditionalboundaries,betweencompanies,acrossnationalborders,across<br />

timezones.Thewinnerswillbethose<br />

who successfully match the capabilities<br />

of the technology with the skills<br />

and aspirations of their employees.<br />

The rest, like the text on that old fax<br />

paper,willsimplyfadeaway.<br />

58


Cultural development and the Internet<br />

Oman’s culture, the Internet and a changing world<br />

by Mohammed Al-Wahaibi, Executive President, Oman Telecommunications Company<br />

TheInternetischangingthecultureinOman.Inspiteoflanguagebarriersandlimited<br />

computer availability, Internet use is rising. The government has contributed to this<br />

growthbyaligningitsstrategiesandpoliciestoencourageInternetusage.Forbusinesses,<br />

the main growth drivers are lower cost communications and access to the world’s<br />

markets.OmaniyouthusetheInternettobeheardlocallyandinteractglobally.Omanis<br />

tacklingthedigitalgapandcreatingtheinfrastructureforaknowledge-basedeconomy.<br />

MohammedbinAliAl-WahaibiistheExecutivePresidentoftheOmanTelecommunicationsCompany<br />

(S.A.O.C).HeisamemberoftheOmaniGovernmentITexecutiveCommittee,theChairmanofOman<br />

OpticFiberCompany,theChairmanofOmanMobileTelecommunicationsCompany,amemberofBank<br />

Muscat Investment Fund Steering committee, Deputy Chairman of the Arab Regional Group and<br />

ChairmanoftheAffiliatedInfrastructureInvestmentandServicesGroupandamemberoftheIEEE.<br />

MrAl-WahaibiearnedhisBSdegreeinElectricalandElectronicsEngineeringfromtheUniversityof<br />

Toledo,USA,andaMSinTelecommunicationsfromtheUniversityofPittsburgh,USA.Heiscurrently<br />

workingonaPhDinInformationTechnologyattheUniversityofSunderland,UK.Hisresearchinterest<br />

<strong>include</strong>s IT risk management, the role of culture in IT deployment and IT/IS success and failure<br />

issues.<br />

TheInternetwasformallylaunchedin<br />

Oman in 1997. By 2004, the number<br />

of subscribers exceeded 50,000. This<br />

growth is reflected by, and perhaps<br />

attributedto,thelowercostsofhome<br />

computers, commercial growth and<br />

investment in Oman, Internet cafés,<br />

onlinechatandgamingculturesand,<br />

morerecently,wirelessnetworks.<br />

However, the roots of this growth<br />

existedinOmanasearlyasthemidto<br />

late ‘80s, even before the formal<br />

launchoftheInternetinOman.This<br />

wasintheformofInternetRelayChat<br />

(IRC)andBulletinBoardSystemsthat<br />

wererunbyInternetenthusiastusing<br />

conventionalphonelines.Inarapidly<br />

evolvinganddevelopingcountrysuch<br />

asOman,itisthereforenotsurprising<br />

thatthistechnologyhasbeensoreadilyembracedbyitspeople.<br />

Thereisstillpotentialforgrowth.Ina<br />

countrywithapopulationofabout2.3<br />

million (2003 statistics), of which<br />

around 0.55 million are expatriates,<br />

there is scope for expansion.<br />

Therefore,highobjectivesweresetby<br />

the government to increase Internet<br />

penetrationwithintheOmanisociety<br />

andpromotethedigitaleconomy.To<br />

start, a high level committee for the<br />

information society, including e-<br />

Government and e-Commerce, in<br />

Omanwasformed.Manyofthestrategies<br />

promoted by the government,<br />

nowatdifferentphasesofimplementation,<br />

will be fully functional before<br />

theendofthisyear.<br />

Furthermore, a state-of-the art informationhighwaybasedonIP/MPLSis<br />

being implemented for the government<br />

by Omantel. Other initiatives<br />

<strong>include</strong> adopting Internet within the<br />

educationalcurriculumandbuildinga<br />

securedbankingnetworkcalledBank<br />

Net.ThesechangeswillsoonrestructurethewaytheOmanisocietyworks.<br />

Convenienceforusers<br />

Everything from water bills to traffic<br />

offenceswillsoonbepayableoverthe<br />

Internet. Travel forms, work permits<br />

and passport renewals are currently<br />

online. This should have a double<br />

impact. It will increase convenience<br />

for the users and will automate the<br />

centralisation of official information.<br />

It is just a matter of time before<br />

Internet access at home is transformedfromaluxurytoautilityjust<br />

as essential as conventional phones<br />

areformanytoday.<br />

A great amount of growth is being<br />

envisagedinOman’seconomicstructure<br />

and its society. With opportunitiesforforeigninvestmentandseveral<br />

industrialprojectsinthepipeline,the<br />

Internet is playing a crucial part in<br />

communication and information<br />

transferwithoverseascontractorsand<br />

customers. This dynamic, intercontinental,<br />

phase of business growth<br />

brings,withitalargedemandforcost<br />

effective, fast and reliable communication.Mostcompaniesnowusewebbasedconferencingfacilities,reducing<br />

theirtravelcostsaswellasincreasing<br />

theirexposureandmarketawareness.<br />

Onanationallevel,agoodnumberof<br />

small businesses are benefiting from<br />

Internet advertising and the number<br />

ofwebsitesisrapidlyincreasing.Also,<br />

theInternetwillplayacriticalrolein<br />

the development of tourism in the<br />

countrybyreachingpotentialvisitors<br />

globally in a cost effective way.<br />

60


Cultural development and the Internet<br />

Already, several tourist projects and<br />

propertiesarebeingadvertisedonthe<br />

web at the very early stages of construction.Omanisopenforbusiness,<br />

andwhatcouldbemoreopenthanthe<br />

Internet<br />

Usersofthefuture<br />

LookingatthedemographyofOman’s<br />

population, 70 per cent of Omanis<br />

startingtousetheInternetareunder<br />

the age of 18. From Internet cafes to<br />

gaming, to chatting, to buying CDs<br />

online,theyouthofOmanarenotonly<br />

today’smainusersoftheInternet,but<br />

alsothemainusersofthefuture.Itis<br />

thereforevitalthattheirneedsaremet<br />

intermsofreliabilityandavailability<br />

ofservicesthattheyexpect.<br />

Inaddition,theInternetisalsoplayinganactiveroleinthedevelopment<br />

of Oman’s younger generation. Many<br />

youngstersnowchatandmeetonline,<br />

keepintouchwithfriendsandfamily,<br />

discuss current issues. From this,<br />

manygroupsandeventshavesprung<br />

upsuchasphotographycompetitions<br />

andthelike.<br />

Also, many teenagers and young<br />

adults,whootherwisewouldnothave<br />

the time or the resources for further<br />

studies,arenowtakingonlinecourses<br />

offeredbyuniversitiesabroad.<br />

Theonsetofthemobilephoneculture<br />

hasseenanincreaseintheuseofthe<br />

Internet for downloading ring-tones<br />

andimages.TheInternetisplayingan<br />

important role in shaping a more<br />

proactiveandinformedgeneration.<br />

Mostimportantly,Omantelismaking<br />

anefforttotacklethedigitalgap,create<br />

the proper infrastructure for a<br />

knowledge-based economy and further<br />

enhance awareness among the<br />

public of Internet usage. Omantel is<br />

currentlydeployingbroadbandservicesbasedonADSLandATMtechnologieswithultimateobjectivestofanout<br />

andfacilitatetheuseoftheInternetin<br />

schools, in universities and among<br />

ordinarypeople.<br />

Other initiatives that would help<br />

bridgethedigitalgaparethedeployment<br />

of Wi-Fi, Wireless Local Loop<br />

(WLL) and video on demand.<br />

Providingbasictelecomservicestothe<br />

remote areas will develop the infrastructureforthefutureuseofInternet<br />

andbroadenthecustomerbase.<br />

Expansion<br />

Figures 2: The Internet is playing an important role in shaping a more<br />

proactive and informed generation.<br />

Figures 1: Seventy per cent of Omanis starting to use the Internet are under the age of 18.<br />

In brief, there is still opportunity for<br />

expansionoftheInternetinOmanfor<br />

both business and personal use. This<br />

isparticularlytrueforpeoplewholive<br />

in the suburbs or in villages.<br />

Considering the trends discussed<br />

above,wecanseethattheInternetis<br />

entering into<br />

and, to an<br />

extent,aidingin<br />

the cultural and<br />

financial redefinition<br />

of modernOmanisocietyaswellasof<br />

the Middle East<br />

asawhole.<br />

The success<br />

these changes<br />

have already<br />

achieved shows<br />

the great influence<br />

the<br />

Internet can<br />

have on our<br />

evolvingsociety.<br />

However, it is<br />

our role as the<br />

decisionmakersintheprogressionof<br />

thistechnology,tomakesurethatthis<br />

influence is not abused or misused,<br />

notonlyonalocallevelbutonagloballevelaswell.<br />

TheArabworldhasanestimatedfour<br />

percentoftheworld’spopulation,but<br />

has only one per cent of the world’s<br />

Internetusers.Thisisaclearindicator<br />

ofthepotentialgrowthtocomeinthe<br />

region.<br />

Wenowliveinamorepoliticallyand<br />

financially fragile world. Decisions<br />

and planning for growth should,<br />

therefore,takeplacewiththisfragility<br />

in mind. Accordingly, growth should<br />

progress at a rate that is suitable for<br />

societytoabsorbandadjustto.Bytakingthesefactorsintoaccount,wecan<br />

lookforwardtoincreasinggrowthand<br />

enrichment of our society for a long<br />

timetocome.<br />

InOman,Internetpenetrationisconstantlyincreasingamonggovernment<br />

organisations, consumers and businesses<br />

alike, and demand for highspeedbroadbandInternetserviceshas<br />

neverbeengreater.<br />

In conclusion, the popularity of the<br />

Internetcontinuestogrowlocallyand<br />

internationally.TheInternethasgone<br />

farbeyondbeingatechnologyassuch,<br />

butneedstobeconsidered,onitsown<br />

merits, as a cultural phenomenon,<br />

which although constantly evolving<br />

andchanging,isleavingapermanent<br />

imprintonallculturesfornowandfor<br />

thefuture.<br />

61


Cultural development and the Internet<br />

Already, several tourist projects and<br />

propertiesarebeingadvertisedonthe<br />

web at the very early stages of construction.Omanisopenforbusiness,<br />

andwhatcouldbemoreopenthanthe<br />

Internet<br />

Usersofthefuture<br />

LookingatthedemographyofOman’s<br />

population, 70 per cent of Omanis<br />

startingtousetheInternetareunder<br />

the age of 18. From Internet cafes to<br />

gaming, to chatting, to buying CDs<br />

online,theyouthofOmanarenotonly<br />

today’smainusersoftheInternet,but<br />

alsothemainusersofthefuture.Itis<br />

thereforevitalthattheirneedsaremet<br />

intermsofreliabilityandavailability<br />

ofservicesthattheyexpect.<br />

Inaddition,theInternetisalsoplayinganactiveroleinthedevelopment<br />

of Oman’s younger generation. Many<br />

youngstersnowchatandmeetonline,<br />

keepintouchwithfriendsandfamily,<br />

discuss current issues. From this,<br />

manygroupsandeventshavesprung<br />

upsuchasphotographycompetitions<br />

andthelike.<br />

Also, many teenagers and young<br />

adults,whootherwisewouldnothave<br />

the time or the resources for further<br />

studies,arenowtakingonlinecourses<br />

offeredbyuniversitiesabroad.<br />

Theonsetofthemobilephoneculture<br />

hasseenanincreaseintheuseofthe<br />

Internet for downloading ring-tones<br />

andimages.TheInternetisplayingan<br />

important role in shaping a more<br />

proactiveandinformedgeneration.<br />

Mostimportantly,Omantelismaking<br />

anefforttotacklethedigitalgap,create<br />

the proper infrastructure for a<br />

knowledge-based economy and further<br />

enhance awareness among the<br />

public of Internet usage. Omantel is<br />

currentlydeployingbroadbandservicesbasedonADSLandATMtechnologieswithultimateobjectivestofanout<br />

andfacilitatetheuseoftheInternetin<br />

schools, in universities and among<br />

ordinarypeople.<br />

Other initiatives that would help<br />

bridgethedigitalgaparethedeployment<br />

of Wi-Fi, Wireless Local Loop<br />

(WLL) and video on demand.<br />

Providingbasictelecomservicestothe<br />

remote areas will develop the infrastructureforthefutureuseofInternet<br />

andbroadenthecustomerbase.<br />

Expansion<br />

Figures 2: The Internet is playing an important role in shaping a more<br />

proactive and informed generation.<br />

Figures 1: Seventy per cent of Omanis starting to use the Internet are under the age of 18.<br />

In brief, there is still opportunity for<br />

expansionoftheInternetinOmanfor<br />

both business and personal use. This<br />

isparticularlytrueforpeoplewholive<br />

in the suburbs or in villages.<br />

Considering the trends discussed<br />

above,wecanseethattheInternetis<br />

entering into<br />

and, to an<br />

extent,aidingin<br />

the cultural and<br />

financial redefinition<br />

of modernOmanisocietyaswellasof<br />

the Middle East<br />

asawhole.<br />

The success<br />

these changes<br />

have already<br />

achieved shows<br />

the great influence<br />

the<br />

Internet can<br />

have on our<br />

evolvingsociety.<br />

However, it is<br />

our role as the<br />

decisionmakersintheprogressionof<br />

thistechnology,tomakesurethatthis<br />

influence is not abused or misused,<br />

notonlyonalocallevelbutonagloballevelaswell.<br />

TheArabworldhasanestimatedfour<br />

percentoftheworld’spopulation,but<br />

has only one per cent of the world’s<br />

Internetusers.Thisisaclearindicator<br />

ofthepotentialgrowthtocomeinthe<br />

region.<br />

Wenowliveinamorepoliticallyand<br />

financially fragile world. Decisions<br />

and planning for growth should,<br />

therefore,takeplacewiththisfragility<br />

in mind. Accordingly, growth should<br />

progress at a rate that is suitable for<br />

societytoabsorbandadjustto.Bytakingthesefactorsintoaccount,wecan<br />

lookforwardtoincreasinggrowthand<br />

enrichment of our society for a long<br />

timetocome.<br />

InOman,Internetpenetrationisconstantlyincreasingamonggovernment<br />

organisations, consumers and businesses<br />

alike, and demand for highspeedbroadbandInternetserviceshas<br />

neverbeengreater.<br />

In conclusion, the popularity of the<br />

Internetcontinuestogrowlocallyand<br />

internationally.TheInternethasgone<br />

farbeyondbeingatechnologyassuch,<br />

butneedstobeconsidered,onitsown<br />

merits, as a cultural phenomenon,<br />

which although constantly evolving<br />

andchanging,isleavingapermanent<br />

imprintonallculturesfornowandfor<br />

thefuture.<br />

61


Service assurance<br />

Service assurance – defining the way<br />

by Asif Naseem, Board Member, Service Availability Forum, and Senior Vice President and Chief<br />

Technology, Officer GoAhead Software<br />

Competitionhasfuelledconsumerdemandforincreasinglysophisticatedtelecommunicationsservices.Operatorsandcarriersneedtoupgradetheirlegacysystemstomeet<br />

consumer demand. They are pushing telecom equipment manufactures (TEMs) to<br />

deliverrapidlyadvanced,morecosteffectiveequipment.Oldproprietarysolutionswere<br />

costlyandtookyearstodevelop,butindustrystandardshaveopenedthewayforspecialised<br />

companies to produce efficiently lower-cost specialised systems, components,<br />

bothhardwareandsoftware,thatcanbequicklyassembledtomeettheneedreliably.<br />

AsifNaseemisaBoardMemberoftheServiceAvailabilityForumandtheSeniorVicePresidentand<br />

ChiefTechnologyOfficerofGoAheadSoftware.DrNaseempreviouslyservedastheGeneralManager<br />

andDirector,ICSD,EMEAofMotorola,asDirectorofEngineeringatAT&T/NCRand,mostrecently,as<br />

VicePresident,BusinessOperationsatIospanWireless,abroadbandwirelesscompanylateracquired<br />

byIntelandL3.HestartedhiscareeratAT&TBellLaboratories,whereheheldavarietyoftechnical<br />

andmanagementpositions.HehasservedontheAdvisoryBoardsofseveralstart-upcompanies.<br />

Asif Naseem received his MS in Electrical Engineering and a PhD in Computer Engineering from<br />

MichiganStateUniversity.<br />

Consumers of telecommunications<br />

services demand increasingly sophisticated<br />

services from their service<br />

providers. The mobile phone is no<br />

longer a speak-listen instrument.<br />

Consumers are using their mobile<br />

phones as converged devices for a<br />

varietyofreal-timeandasynchronous<br />

communication, to capture and send<br />

pictures,forinstantmessaging,pushto-talk,games,aspersonalorganisers,<br />

etc.<br />

ThefirstvideosoftherecentLondon<br />

tubebombingsdidnotcomefromtelevision<br />

crews or reporters, but from<br />

passengers with cameras on their<br />

mobilephones.Thisisjustoneexample<br />

of today’s consumer driven communicationrevolution.<br />

The growth of multimedia services, a<br />

global phenomenon, is especially<br />

impressiveinemergingmarketssuch<br />

asIndiaandChina,wherethenumber<br />

of mobile phone subscribers has surpassed<br />

the wireline subscribers.<br />

<strong>World</strong>wide, mobile subscription has<br />

long surpassed the one billion mark,<br />

andstronggrowthisexpectedforthe<br />

foreseeable future. This impressive<br />

growthandspendingcreatestremendous<br />

opportunities for the telecommunications<br />

industry and unique<br />

challengesforallindustryplayers.<br />

Businesschallenges<br />

Pricepressures<br />

Thefastestgrowthinwirelessservices<br />

is occurring in emerging markets<br />

where the average revenue per user<br />

(ARPU) is low – US$11in India and<br />

US$10 in China; the ARPU is US$57<br />

in the USA and US$40 in Europe.<br />

According to the Telecom Regulatory<br />

AuthorityofIndia,thehighsubscriber<br />

growth rates in 2004, of more than<br />

Telecomspendingseemstohavestabilised.Growthisatbestanaemicand<br />

a far cry from the go-go years of the<br />

late 90s. Service providers are focusing<br />

upon their capital expenditures<br />

andoperationalcoststoprotectprofitabilityandreturnoninvestment.<br />

100percent,wereduetotheexpansion<br />

of the addressable market each<br />

timethetariffwascutduringtheyear.<br />

Carrier consolidation, such as the<br />

AT&T/Cingular and Sprint/Nextel<br />

mergers, left fewer service providers<br />

andincreasedthenegotiatingleverage<br />

oftheremainingcompaniesoversuppliers<br />

and telecom equipment manufactures(TEMs).Consequently,TEMs<br />

are faced with mounting price pressuresandmustconstantlyre-evaluate<br />

theircapitalandoperationalexpenses<br />

tomaintainprofitability.<br />

Enhancingrevenues<br />

Duetocompetition,traditionalcircuit<br />

switched voice and best-effort data<br />

services are now commodities. These<br />

services still generate cash, but they<br />

no longer generate profits.<br />

Consequently, service providers are<br />

forcedtofindnewsignificantsources<br />

ofrevenuetoboosttheirARPUs.<br />

IPnetworksletserviceprovidersbundle<br />

voice, data and video services or<br />

triple play into single low-cost pack-<br />

63


Service assurance<br />

agesandofferacompellingsetofservicessuchasIPTV,onlinegaming,distancelearningandmanynewapplications.Thisappealstobothconsumers<br />

and service providers. The convergence<br />

of IP networks with both fixed<br />

and wireless networks facilitates the<br />

delivery of rich multimedia content,<br />

traditionallydominatedbycablecompanies,bytelcos.<br />

Telecomserviceprovidersareencouraged<br />

by technology, now available,<br />

that lets them cost effectively deliver<br />

advanced services to users. There is<br />

still some time for telcos to roll out<br />

suchservices.Thechallengeistotake<br />

advantageofthelimitedtimewindow.<br />

Adoptionofnewtechnologies<br />

Todeliverthesenewconvergedservices,<br />

networkoperatorsmustupgradetheir<br />

legacy equipment at unprecedented<br />

speedandgettheirIP-basedservices<br />

tomarketquickly.Thisputspressure<br />

upon the TEMs to meet the network<br />

operators’ speed and cost requirements.<br />

Traditionally, TEMs have developed<br />

proprietary systems that have been<br />

costly,andtookyearstogettomarket.<br />

Giventhecostandspeedconstraints,<br />

this approach no longer works. So<br />

TEMsaremovingawayfrombuilding<br />

proprietary telecom systems to systems<br />

based upon commercially<br />

available,pre-integratedpre-tested,<br />

standards-basedcomponents.<br />

The challenge for TEMs is to decide<br />

where they must add core value, and<br />

wheretheyshouldrelyuponpartners<br />

and suppliers to deliver the components<br />

quickly to build systems that<br />

addressthecarriers’service,costand<br />

time-to-market requirements. This is<br />

notatemporarysituation.Thesechallengeswillcontinuetodefinethetelecom<br />

environment for the foreseeable<br />

future.<br />

Aparadigmshift<br />

In the early days of enterprise computing,<br />

single source computer systems<br />

suppliers provided a full, vertically<br />

integrated, computing solution.<br />

They would design, manufacture and<br />

deliver their own silicon, hardware,<br />

operating systems, middleware and<br />

thecustomerapplication.<br />

The supplier’s differentiating factors<br />

were usually distinct features, functionality<br />

and speeds and feeds. Such<br />

proprietary offerings locked the customerintothesolutionfortheforeseeable<br />

future with little flexibility to<br />

changeorupgradethepieceswithout<br />

payingthesupplierpremiumprices.<br />

Realising that they were locked into<br />

expensive proprietary, single-supplier,<br />

solutions, companies sought the<br />

flexibilitytopickandchoosesolution<br />

components from best-of-breed suppliers.<br />

This encouraged the developmentandadoptionofstandardsforall<br />

manufacturerstouseandhelpedcreate<br />

an eco-system of suppliers specialised<br />

in producing individual systems<br />

elements better, faster, cheaper<br />

thananyotherplayer.<br />

Since the elements are standards<br />

based,theyworkperfectlywithother<br />

complementary systems elements<br />

provided by other standards based<br />

suppliers to create a cost effective<br />

solution for the customer. This gave<br />

birthtoasuccessfulhorizontalindustrymodelandanefficientcommercial<br />

off-the-shelf supplier (COTS) ecosystem<br />

for enterprise computing.<br />

Industry players that successfully<br />

adopted this model have benefited<br />

fromit.Otherseitherexitedthebusinessorwererelegatedtoniches.<br />

Thetelecomindustryisjustbeginning<br />

tobenefitfromthehorizontalindustry<br />

model with a COTS ecosystem of its<br />

own.TheemergenceofIPinthetelecom<br />

industry is accelerating the convergencebetweenITandthetelecom<br />

network.Theshiftismadepossibleby<br />

the adoption of a few key standards<br />

thatdefineinterfacesbetweenthevarious<br />

layers of the telecom equipment<br />

systems.<br />

Hardwareplatformstandards,suchas<br />

AdvancedTCA, specify carrier-grade<br />

hardware architecture to provide the<br />

reliability,performanceandscalability<br />

required for telecommunication<br />

applications. The Open Software<br />

DevelopmentLaboratory(OSDL)now<br />

hasaworkinggroupspecificallydedicatedtodefiningCarrierGradeLinux<br />

(CGL) feature roadmaps and specifications<br />

to use in telecommunications<br />

architectures.<br />

Serviceavailability<br />

One of the most significant recent<br />

developmentshasbeentheadventof<br />

the Service Availability Forum, an<br />

industry consortium dedicated to<br />

developingspecificationsforstandard<br />

interfaces necessary to enable the<br />

delivery of highly available carriergradesystemswithCOTScomponents<br />

including hardware platforms, middlewareandserviceapplications.The<br />

ServiceAvailabilityForumisdeveloping<br />

three sets of specifications that<br />

apply to various layers of a highly<br />

availableserviceplatform.<br />

HardwarePlatformInterface<br />

specification<br />

The Hardware Platform Interface<br />

(HPI) specification separates the<br />

hardware from management middlewareandmakeseachindependentof<br />

the other. It specifies services which,<br />

when implemented by the hardware<br />

platform manufacturer, simplify the<br />

integrationofthird-partymiddleware<br />

thatcomplieswiththeHPIspecification.<br />

The interface allows portability of<br />

middlewarecomponentsbetweenvarioushardwareplatformsthatprovide<br />

servicesspecifiedbytheinterface.<br />

ApplicationInterfaceSpecification<br />

The Application Interface Specification<br />

(AIS) standardises the interface<br />

between Service Availability Forum<br />

compliantHighAvailability(HA)middlewareandserviceapplications.Just<br />

as the HPI interface allows hardware<br />

platformabstraction,theAISenables<br />

compliant applications to be ported<br />

across AIS compliant middleware<br />

fromvariousvendors.<br />

SystemsManagementSpecification<br />

TheSystemsManagementSpecification<br />

(SMS), a complementary specification,<br />

acts as an umbrella to tie together<br />

existing HPI and AIS specifications.<br />

The overall goal of the SMS is to<br />

addresstheadministrativeoperations<br />

andmanagementofvariousaspectsof<br />

thehighlyavailablesystem.<br />

The IP telecom network is creating<br />

unprecedented demand for new and<br />

converged consumer telecommunications<br />

services. This in turn is forcing<br />

TEMstorethinktheirsystemdevelopment<br />

strategies and develop telecom<br />

network systems quickly and cost<br />

effectively.<br />

The emergence of a set of key standards<br />

is enabling an ecosystem of<br />

COTS suppliers. The COTS suppliers<br />

help TEMs to build, quickly and cost<br />

effectively, highly available systems<br />

using standards-based components.<br />

TheServiceAvailabilityForum’sspecificationsareplayingapivotalrolein<br />

the transition from proprietary to<br />

standards-basedsystems.<br />

64


Service assurance<br />

agesandofferacompellingsetofservicessuchasIPTV,onlinegaming,distancelearningandmanynewapplications.Thisappealstobothconsumers<br />

and service providers. The convergence<br />

of IP networks with both fixed<br />

and wireless networks facilitates the<br />

delivery of rich multimedia content,<br />

traditionallydominatedbycablecompanies,bytelcos.<br />

Telecomserviceprovidersareencouraged<br />

by technology, now available,<br />

that lets them cost effectively deliver<br />

advanced services to users. There is<br />

still some time for telcos to roll out<br />

suchservices.Thechallengeistotake<br />

advantageofthelimitedtimewindow.<br />

Adoptionofnewtechnologies<br />

Todeliverthesenewconvergedservices,<br />

networkoperatorsmustupgradetheir<br />

legacy equipment at unprecedented<br />

speedandgettheirIP-basedservices<br />

tomarketquickly.Thisputspressure<br />

upon the TEMs to meet the network<br />

operators’ speed and cost requirements.<br />

Traditionally, TEMs have developed<br />

proprietary systems that have been<br />

costly,andtookyearstogettomarket.<br />

Giventhecostandspeedconstraints,<br />

this approach no longer works. So<br />

TEMsaremovingawayfrombuilding<br />

proprietary telecom systems to systems<br />

based upon commercially<br />

available,pre-integratedpre-tested,<br />

standards-basedcomponents.<br />

The challenge for TEMs is to decide<br />

where they must add core value, and<br />

wheretheyshouldrelyuponpartners<br />

and suppliers to deliver the components<br />

quickly to build systems that<br />

addressthecarriers’service,costand<br />

time-to-market requirements. This is<br />

notatemporarysituation.Thesechallengeswillcontinuetodefinethetelecom<br />

environment for the foreseeable<br />

future.<br />

Aparadigmshift<br />

In the early days of enterprise computing,<br />

single source computer systems<br />

suppliers provided a full, vertically<br />

integrated, computing solution.<br />

They would design, manufacture and<br />

deliver their own silicon, hardware,<br />

operating systems, middleware and<br />

thecustomerapplication.<br />

The supplier’s differentiating factors<br />

were usually distinct features, functionality<br />

and speeds and feeds. Such<br />

proprietary offerings locked the customerintothesolutionfortheforeseeable<br />

future with little flexibility to<br />

changeorupgradethepieceswithout<br />

payingthesupplierpremiumprices.<br />

Realising that they were locked into<br />

expensive proprietary, single-supplier,<br />

solutions, companies sought the<br />

flexibilitytopickandchoosesolution<br />

components from best-of-breed suppliers.<br />

This encouraged the developmentandadoptionofstandardsforall<br />

manufacturerstouseandhelpedcreate<br />

an eco-system of suppliers specialised<br />

in producing individual systems<br />

elements better, faster, cheaper<br />

thananyotherplayer.<br />

Since the elements are standards<br />

based,theyworkperfectlywithother<br />

complementary systems elements<br />

provided by other standards based<br />

suppliers to create a cost effective<br />

solution for the customer. This gave<br />

birthtoasuccessfulhorizontalindustrymodelandanefficientcommercial<br />

off-the-shelf supplier (COTS) ecosystem<br />

for enterprise computing.<br />

Industry players that successfully<br />

adopted this model have benefited<br />

fromit.Otherseitherexitedthebusinessorwererelegatedtoniches.<br />

Thetelecomindustryisjustbeginning<br />

tobenefitfromthehorizontalindustry<br />

model with a COTS ecosystem of its<br />

own.TheemergenceofIPinthetelecom<br />

industry is accelerating the convergencebetweenITandthetelecom<br />

network.Theshiftismadepossibleby<br />

the adoption of a few key standards<br />

thatdefineinterfacesbetweenthevarious<br />

layers of the telecom equipment<br />

systems.<br />

Hardwareplatformstandards,suchas<br />

AdvancedTCA, specify carrier-grade<br />

hardware architecture to provide the<br />

reliability,performanceandscalability<br />

required for telecommunication<br />

applications. The Open Software<br />

DevelopmentLaboratory(OSDL)now<br />

hasaworkinggroupspecificallydedicatedtodefiningCarrierGradeLinux<br />

(CGL) feature roadmaps and specifications<br />

to use in telecommunications<br />

architectures.<br />

Serviceavailability<br />

One of the most significant recent<br />

developmentshasbeentheadventof<br />

the Service Availability Forum, an<br />

industry consortium dedicated to<br />

developingspecificationsforstandard<br />

interfaces necessary to enable the<br />

delivery of highly available carriergradesystemswithCOTScomponents<br />

including hardware platforms, middlewareandserviceapplications.The<br />

ServiceAvailabilityForumisdeveloping<br />

three sets of specifications that<br />

apply to various layers of a highly<br />

availableserviceplatform.<br />

HardwarePlatformInterface<br />

specification<br />

The Hardware Platform Interface<br />

(HPI) specification separates the<br />

hardware from management middlewareandmakeseachindependentof<br />

the other. It specifies services which,<br />

when implemented by the hardware<br />

platform manufacturer, simplify the<br />

integrationofthird-partymiddleware<br />

thatcomplieswiththeHPIspecification.<br />

The interface allows portability of<br />

middlewarecomponentsbetweenvarioushardwareplatformsthatprovide<br />

servicesspecifiedbytheinterface.<br />

ApplicationInterfaceSpecification<br />

The Application Interface Specification<br />

(AIS) standardises the interface<br />

between Service Availability Forum<br />

compliantHighAvailability(HA)middlewareandserviceapplications.Just<br />

as the HPI interface allows hardware<br />

platformabstraction,theAISenables<br />

compliant applications to be ported<br />

across AIS compliant middleware<br />

fromvariousvendors.<br />

SystemsManagementSpecification<br />

TheSystemsManagementSpecification<br />

(SMS), a complementary specification,<br />

acts as an umbrella to tie together<br />

existing HPI and AIS specifications.<br />

The overall goal of the SMS is to<br />

addresstheadministrativeoperations<br />

andmanagementofvariousaspectsof<br />

thehighlyavailablesystem.<br />

The IP telecom network is creating<br />

unprecedented demand for new and<br />

converged consumer telecommunications<br />

services. This in turn is forcing<br />

TEMstorethinktheirsystemdevelopment<br />

strategies and develop telecom<br />

network systems quickly and cost<br />

effectively.<br />

The emergence of a set of key standards<br />

is enabling an ecosystem of<br />

COTS suppliers. The COTS suppliers<br />

help TEMs to build, quickly and cost<br />

effectively, highly available systems<br />

using standards-based components.<br />

TheServiceAvailabilityForum’sspecificationsareplayingapivotalrolein<br />

the transition from proprietary to<br />

standards-basedsystems.<br />

64


Service assurance<br />

agesandofferacompellingsetofservicessuchasIPTV,onlinegaming,distancelearningandmanynewapplications.Thisappealstobothconsumers<br />

and service providers. The convergence<br />

of IP networks with both fixed<br />

and wireless networks facilitates the<br />

delivery of rich multimedia content,<br />

traditionallydominatedbycablecompanies,bytelcos.<br />

Telecomserviceprovidersareencouraged<br />

by technology, now available,<br />

that lets them cost effectively deliver<br />

advanced services to users. There is<br />

still some time for telcos to roll out<br />

suchservices.Thechallengeistotake<br />

advantageofthelimitedtimewindow.<br />

Adoptionofnewtechnologies<br />

Todeliverthesenewconvergedservices,<br />

networkoperatorsmustupgradetheir<br />

legacy equipment at unprecedented<br />

speedandgettheirIP-basedservices<br />

tomarketquickly.Thisputspressure<br />

upon the TEMs to meet the network<br />

operators’ speed and cost requirements.<br />

Traditionally, TEMs have developed<br />

proprietary systems that have been<br />

costly,andtookyearstogettomarket.<br />

Giventhecostandspeedconstraints,<br />

this approach no longer works. So<br />

TEMsaremovingawayfrombuilding<br />

proprietary telecom systems to systems<br />

based upon commercially<br />

available,pre-integratedpre-tested,<br />

standards-basedcomponents.<br />

The challenge for TEMs is to decide<br />

where they must add core value, and<br />

wheretheyshouldrelyuponpartners<br />

and suppliers to deliver the components<br />

quickly to build systems that<br />

addressthecarriers’service,costand<br />

time-to-market requirements. This is<br />

notatemporarysituation.Thesechallengeswillcontinuetodefinethetelecom<br />

environment for the foreseeable<br />

future.<br />

Aparadigmshift<br />

In the early days of enterprise computing,<br />

single source computer systems<br />

suppliers provided a full, vertically<br />

integrated, computing solution.<br />

They would design, manufacture and<br />

deliver their own silicon, hardware,<br />

operating systems, middleware and<br />

thecustomerapplication.<br />

The supplier’s differentiating factors<br />

were usually distinct features, functionality<br />

and speeds and feeds. Such<br />

proprietary offerings locked the customerintothesolutionfortheforeseeable<br />

future with little flexibility to<br />

changeorupgradethepieceswithout<br />

payingthesupplierpremiumprices.<br />

Realising that they were locked into<br />

expensive proprietary, single-supplier,<br />

solutions, companies sought the<br />

flexibilitytopickandchoosesolution<br />

components from best-of-breed suppliers.<br />

This encouraged the developmentandadoptionofstandardsforall<br />

manufacturerstouseandhelpedcreate<br />

an eco-system of suppliers specialised<br />

in producing individual systems<br />

elements better, faster, cheaper<br />

thananyotherplayer.<br />

Since the elements are standards<br />

based,theyworkperfectlywithother<br />

complementary systems elements<br />

provided by other standards based<br />

suppliers to create a cost effective<br />

solution for the customer. This gave<br />

birthtoasuccessfulhorizontalindustrymodelandanefficientcommercial<br />

off-the-shelf supplier (COTS) ecosystem<br />

for enterprise computing.<br />

Industry players that successfully<br />

adopted this model have benefited<br />

fromit.Otherseitherexitedthebusinessorwererelegatedtoniches.<br />

Thetelecomindustryisjustbeginning<br />

tobenefitfromthehorizontalindustry<br />

model with a COTS ecosystem of its<br />

own.TheemergenceofIPinthetelecom<br />

industry is accelerating the convergencebetweenITandthetelecom<br />

network.Theshiftismadepossibleby<br />

the adoption of a few key standards<br />

thatdefineinterfacesbetweenthevarious<br />

layers of the telecom equipment<br />

systems.<br />

Hardwareplatformstandards,suchas<br />

AdvancedTCA, specify carrier-grade<br />

hardware architecture to provide the<br />

reliability,performanceandscalability<br />

required for telecommunication<br />

applications. The Open Software<br />

DevelopmentLaboratory(OSDL)now<br />

hasaworkinggroupspecificallydedicatedtodefiningCarrierGradeLinux<br />

(CGL) feature roadmaps and specifications<br />

to use in telecommunications<br />

architectures.<br />

Serviceavailability<br />

One of the most significant recent<br />

developmentshasbeentheadventof<br />

the Service Availability Forum, an<br />

industry consortium dedicated to<br />

developingspecificationsforstandard<br />

interfaces necessary to enable the<br />

delivery of highly available carriergradesystemswithCOTScomponents<br />

including hardware platforms, middlewareandserviceapplications.The<br />

ServiceAvailabilityForumisdeveloping<br />

three sets of specifications that<br />

apply to various layers of a highly<br />

availableserviceplatform.<br />

HardwarePlatformInterface<br />

specification<br />

The Hardware Platform Interface<br />

(HPI) specification separates the<br />

hardware from management middlewareandmakeseachindependentof<br />

the other. It specifies services which,<br />

when implemented by the hardware<br />

platform manufacturer, simplify the<br />

integrationofthird-partymiddleware<br />

thatcomplieswiththeHPIspecification.<br />

The interface allows portability of<br />

middlewarecomponentsbetweenvarioushardwareplatformsthatprovide<br />

servicesspecifiedbytheinterface.<br />

ApplicationInterfaceSpecification<br />

The Application Interface Specification<br />

(AIS) standardises the interface<br />

between Service Availability Forum<br />

compliantHighAvailability(HA)middlewareandserviceapplications.Just<br />

as the HPI interface allows hardware<br />

platformabstraction,theAISenables<br />

compliant applications to be ported<br />

across AIS compliant middleware<br />

fromvariousvendors.<br />

SystemsManagementSpecification<br />

TheSystemsManagementSpecification<br />

(SMS), a complementary specification,<br />

acts as an umbrella to tie together<br />

existing HPI and AIS specifications.<br />

The overall goal of the SMS is to<br />

addresstheadministrativeoperations<br />

andmanagementofvariousaspectsof<br />

thehighlyavailablesystem.<br />

The IP telecom network is creating<br />

unprecedented demand for new and<br />

converged consumer telecommunications<br />

services. This in turn is forcing<br />

TEMstorethinktheirsystemdevelopment<br />

strategies and develop telecom<br />

network systems quickly and cost<br />

effectively.<br />

The emergence of a set of key standards<br />

is enabling an ecosystem of<br />

COTS suppliers. The COTS suppliers<br />

help TEMs to build, quickly and cost<br />

effectively, highly available systems<br />

using standards-based components.<br />

TheServiceAvailabilityForum’sspecificationsareplayingapivotalrolein<br />

the transition from proprietary to<br />

standards-basedsystems.<br />

64

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