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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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than 75 countries that backed by the Telefonica Group have guaranteed our leadership<br />
in Latin America and Europe.<br />
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* CARRIER ATM<br />
* CARRIER FRAME RELAY<br />
* CARRIER CLEAR CHANNEL<br />
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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 />
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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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Dieter Staudacher, Senior Analyst, Legal Department,<br />
Austrian Regulatory Authority for Broadcasting and<br />
Telecommunication (RTR)<br />
Bernhard Mayr, Head of Technical Regulatory Aspects,<br />
Telekom Austria<br />
Jukka Rakkolainen, Communications Expert, ERO<br />
Mikko Mattinen, Product Director, Content Services, Elisa<br />
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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