Seite 1

1
Internet, NGN and Convergence

• Ernst Langmantel
• Director Technical Division
• Austrian Regulatory Authority for Broadcasting
  and Telecommunication
• The opinions expressed in this presentation are
  the personal views of the author and do not
  prejudge decisions of the Austrian regulatory
  authorities.

2
Convergence leads to battlegrounds.
3
The Convergence Battlegrounds
Communications Industry
Media Industry
Digital Home
Mobile Devices Industry
Internet
Multimedia
VoIP
NGN
Information Technology
Consumers Electronics Industry
Broadcasting Networks
IPR
4
Contents

• Regulatory Aspects of Convergence.
• The Battlegrounds
• 1st battleground Internet VoIP lt-gt Legacy
  Telephony.
• 2nd battleground Internet Multimedia lt-gt NGN
  Multimedia.
• 3rd battleground Digital Home.
• Final Remarks.

5
Convergence A Rough Definition

• Convergence is the process of integration of
  previously independent industries of
  telecommunications, information technology and
  media.

6
Convergence A Practical View

• One service on many service platforms (networks).
• Many services on one terminal.

7
Flavors of Convergence

• Technical convergence
• Convergence of transport platforms (e.g.
  broadcasting networks Internet),
• Convergence of terminals - e.g. television set
  (media) PC.
• Industrial convergence
• Previously separated industries get in touch
• Cooperations,
• Mergers Acquisition.
• Usage convergence
• Level of acceptance of convergent products by the
  customers (typically lags significantly behind
  offered products/ services).

8
Regulatory Aspects (also) of Convergence 1

• Convergence is based on new technologies and new
  economic models (Internet model).
• Web 2.0 developments are an example for the
  innovative power of the Internet model.
• Understanding the different roles of technologies
  and market players in the total picture is key
  for appropriate regulation based on clear and
  simple terms and definitions.
• IPR DRM issues are key elements in the
  convergent landscape.
• Overlapping areas of regulatory responsibility
  should be addressed regulatory convergence.

9
Regulatory Aspects (also) of Convergence 2

• Technology neutrality.
• Relation to emerging markets (extent of
  unregulated first mover advantage).
• Relation to harmonisation standardisation.
• Limits of applicability when not (primarily)
  technology changes but the whole economic
  model.(e.g. PSTN voice monolithic service
  provision, voice over Internet combination of
  different services from different parties by the
  user)
• Harmonisation standardisation.
• Relation to IPRs DRM.
• Relation to service neutrality (e.g. in case of
  spectrum usage).
• Role in creating pan European markets and
  fostering competition.

10
Regulatory Aspects (also) of Convergence 3

• In some regulation areas there is the country of
  origin principle (the more content oriented,
  e.g. eCommerce, audiovisual media services), in
  others the country of service provision
  principle (e.g. communication services and
  networks).
• Especially based on the Internet model properties
  (possibility of exterritorial service provision)
  regulation on basis of country of origin
  principle gets more important (if pure Internet
  VoIP on top of Internet connectivity is more a
  content service country of origin could be
  considered).
• Country of origin principle is often combined
  with harmonised basic requirements (e.g. privacy,
  end user rights) practical issues in
  enforcements of basic rules in other states
  remain.
• Anyway unsolved problems on global scale where
  harmonisation of basic requirements and
  enforcement is unrealistic.

11
Two Convergence Examples

• IPTV, bringing the content of TV-programs to the
  customers via broadband IP-networks (and not via
  broadcasting frequencies)
• to PC,
• to standard television set via setop-box.
• Handy-TV, using mobile phones as television
  sets.
• Are these examples broadcasting/television in
  the legal/regulatory sense?

12
EU Audiovisual Media Services Directive (in
discussion)

• Linear services (push) Program based
  distribution, i.e. fixed time for each
  peace of content.
• Standard broadcasting (analogue digital), IPTV,
  webcasting,
• Non-linear services (pull) content provision
  without time schedule.
• e.g. video on demand, Internet based based news.

13
EU Audiovisual Media Services Directive (in
discussion)

• Linear services (push)revised (liberalised)
  rules starting from todays television rules.
• Non-linear services (pull) harmonised basic
  rules.
• Protection of minors,
• Prohibition of incitement to hatred
• Identification of the media service provider
• Identification of commercial communication
• Prohibition of surreptitious advertising
• Clear rules on product placement an sponsoring
• Qualitative restrictions on advertising (e.g.
  foralcohol or targeted on minors)
• The new directive complements other directives,
  especially the eCommerce directive (no new
  licensing regimes, no new liability for ISPs).

14
Goals of Content and Communications Regulation

• Content
• Free flow of information.
• Media plurality.
• Cultural diversity.
• Minimum fraction of European content.
• Communication services and networks
• Provision of a multitude of affordable
  communication services for the users.
• Stimulate innovation by promoting competition.
• Foster efficient infrastructure investments.

15
Treatment of Conflicting Goals ?

• Different goals of content and communication
  regulation can lead to problems, e.g. in case of
  scarce communication resources.
• Example frequency spectrum.
• The content regulations goals lead (typically)
  to beauty contests and assignment of broadcasting
  frequencies free of charge.
• The communication services regulations goals
  lead (typically) to auctions and high(er) costs
  of spectrum.
• How to satisfy both worlds ?

16
The battlegrounds

• 1st battleground Internet VoIP lt-gt Legacy
  Telephony
• 2nd battleground Internet Multimedia lt-gt NGN
  Multimedia
• 3rd battleground Digital Home

17
1st battleground Internet VoIP lt-gt Legacy
Telephony
18
Legacy Telco Model Vertical Integration

• (Voice) transport and telephony service provision
  are combined in a monolithic block in legacy
  telephone networks vertical integration.
• As immediate result subscribers connected to
  legacy telephone networks are only able to
  subscribe to the service of their network
  provider unless alternatives are opened by
  regulatory intervention in case of SMP (e.g. Call
  by Call Carrier Selection, Carrier Preselection).
  The latter demands implementing specific
  additional technical provisions in the legacy
  switches.

19
Internet Model Whats the Difference?

• The fundamental difference to legacy telco
  networks
• Its NOT the usage of packets for data transport
• Its NOT the Internet Protocol
• Its the twofold separation of transport from
  service
• technically AND commercially

20
Internet Model - Services Applications

• Two basic components
• global Internet connectivity (bitrate, delay,
  transfer data volums,)provided by the Internet
  as dumb transport network,AND (from different
  providers in the generic case)
• additional information service logic on top
• provided by intelligent nodes/terminals at the
  network edge.
• Only the combination of connectivity and
  additional application/service logic from
  generally different providers in the users
  terminal results in functionalities that for the
  user resemble legacy telco services (e.g.
  telephony).

21
Internet VoIP Its Service Combination
Apps/Service Contract with Service Provider A
Application/Service -Layer
App. A
Service combination in the user node/terminal
Service
Internet
Customer
Transport-Layer
Transport 1
Transport Contractwith ISP 1
22
Internet VoIP User Payments
App. A
Application-Layer

Customer
Internet

Transport-Layer
Transport 1
23
Internet Model Key Properties

• Immediate global reach, i.e. any service or
  application provider anywhere in the world
  connected to the Internet can offer his services
  or applications to anyone who is also
  sufficiently connected to the Internet at any
  place in the world, without necessity to work out
  contracts with Internet access providers of these
  customers.
• A convergent dumb transport only platform for
  all kinds of services and applications.
• Applications services from the network edge.
• Fosters innovation and competition.
• Leads to a plethora of information services for
  end users.
• Also increasing dangers (DoS, Spam, Spit, Worms,
  Viruses, )!

24
2nd battleground Internet multimedia lt-gt NGN
multimedia
25
Next Generation Network (NGN)

• service-related functions are independent from
  underlying transport-related technologies.
• unfettered access for users to competing
  service providers and/or services of their
  choice.

26
(No Transcript)
27
(No Transcript)
28
Agreed in general but
29
Internet is more than a data services network

• The data services pile in the picture (www,
  email,) references the Internet.
• Internet already today is a service neutral
  transport platform for multimedia services.

30
Internet separates transport from services

• The separation of service from transport is the
  most important Internet Paradigm this
  separation is implemented technically AND
  commercially!
• Internet services are provided at the edge of the
  network (edge centric approach) client/server
  or peer to peer models.

31
Internet is todays multiservice network
32
Next Generation Network (NGN)

• service-related functions are independent from
  underlying transport-related technologies.
• unfettered access for users to competing
  service providers and/or services of their
  choice.
• ? Operators NGNs seem to develop differently

33
Internet-Services Its the users choice
Contract with Application/Service Provider C
Contract with Application/Service Provider A
App. A
App. B
App. C
App. D
Applications/Services
Customer 1
Customer 2
Internet
Transport 2
Transport 1
Transport-Layer
Contract with ISP 2
Contract with ISP 1
34
NGN-Services Restricted Users Choice (1)
App. C
App. D
Commercial agreement between the customers NGN
(access) provider and 3rd party service
providerson service/application level
OtherNetworks(NGN, Internet)
NGN1 App. A
NGN1 App. B
Customer 1
NGN 1
Transport NGN 1
Contract withNGN Service Provider 1
35
NGN-Services Restricted Users Choice (2)

• Similar to legacy telco networks services and
  transport probably will be commercially
  vertically integrated (supported by technical
  provisions/restrictions).
• The customer again might be in a lock in
  situation as in vertical integrated legacy
  telephone networks and not only for voice but
  for all multimedia services!?

36
Interoperability

• Internet - dumb transport only network.
• Clients must fit to service implementation at the
  server (or peers in case of peer to peer
  services) no network interaction on
  services/application layer.
• Feature rich (smart) NGNs.
• (Many) services are provided in a commercially
  vertically integrated manner by the NGNs -
  intense service specific interworking
  requirements at the network borders are the
  probable results.
• Available experience for telephony only
  networks still in our days there are sometimes
  CCS7 interworking problems when first time
  interconnection two telephone networks.
• Can we be optimistic regarding global NGN
  interoperability when looking at the multitude of
  envisaged NGN multimedia services

37
What then might bekey features really in favour
of NGNs?
38
NGN Model Features Beyond Internet
security
end to end QoS
39
NGNs Security and QoS

• Security and QoS are undoubtedly very important
  features.
• Improvements to some extent also possible in the
  Internet(e.g. authenticated access).
• It will to be seen if increased NGN complexity
  will pay back.

40
3rd battleground Digital Home
41
The final showdown

• Industry convergence
• digital media, broadcasting, entertainment, home
  control, communication.
• New big players new alliances.
• Increasing technical complexity.
• The decisive battle between Internet and NGN will
  be decided in the context of digital home
  infrastructure and services.

42
Final Remarks
43
Convergence - Regulatory Holidays?

• Some telcos ask for non regulation in the area of
  new broadband access infrastructure (VDSL, FTTC,
  FTTH) to foster higher investments.
• Only guaranteed high return on investment leads
  to high level of investments.Cost oriented
  wholesale regulation prevents high investments.
• Principle of technology neutrality on one side,
  non regulation of emerging markets on the other
  hand.
• Why not stick to the (well known) retail minus
  regulatory model?
• NO regulation of retail prices.
• Wholesale price is deducted from freely set
  retail price of investing operator.
• ? retail AND wholesale profitability is up to
  retail price setting of the investing operator!

44
Net Neutrality against Service Discrimination

• Big telcos increasingly talk about QoS fees to be
  charged on Internet only players (yahoo, ebay, )
  - attempt towards restrictions on Internet
  connectivity services?
• The Internet model has a big advantage Internet
  application providers and consumers select the
  kind of service neutral - Internet connectivity
  they need for what they want to provide or
  consume.
• Already today there are many different qualities
  of Internet connectivity with different prices
  from which the users can choose. (speed/
  bandwith, download volumina, typical
  delays/jitter, grade of mobility).
• Imagine a world of goods transportation, where
  transport costs are no longer derived from
  velocity and volume/weight but from other, non
  transport related, properties of the goods and
  from the services that may be based on these
  goods would this be in the interest of the
  economy or the general public?!

45
Net Neutrality a Convergent Perspective

• EU Directive Television without Frontiers -
  Freedom of reception and retransmission (Article
  2a)
• It is confirmed that, as a general rule, the
  Member States must ensure freedom of reception
  and must not restrict the retransmission on their
  territories of television broadcasts from other
  Member States.
• What is true for states should also be true for
  the companies of these states !?
• In the light of convergence television broadens
  to audiovisual content and the transport of the
  content is no longer restricted to radio
  transmission but also possible on IP (e.g.
  Internet, streaming or distribution based on P2P
  technologies as BitTorrent).
• Convergent Conclusion reception and
  retransmission of legal Internet content should
  pass without barriers between content providers
  and consumers on the Internet.

46
Summery

• To build an appropriate regulatory framework it
  is necessary to understand the essence of the
  technologies and to have a clear picture of the
  different roles in the economic models.
• Clear and simple terms and definitions are most
  important for a clear and simple regulatory
  framework.
• IPR DRM issues are key elements in a convergent
  world and the knowledge society and therefore
  should be an essential part of the convergent
  regulatory agenda.
• Overlapping areas of regulatory responsibility
  should be addressed regulatory convergence

47
Thank you very much for your attention!
48
Motivations for telcos migration to NGN