Title: Seite 1
1Internet, 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.
2Convergence leads to battlegrounds.
3The Convergence Battlegrounds
Communications Industry
Media Industry
Digital Home
Mobile Devices Industry
Internet
Multimedia
VoIP
NGN
Information Technology
Consumers Electronics Industry
Broadcasting Networks
IPR
4Contents
- 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.
5Convergence A Rough Definition
- Convergence is the process of integration of
previously independent industries of
telecommunications, information technology and
media.
6Convergence A Practical View
- One service on many service platforms (networks).
- Many services on one terminal.
7Flavors 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).
8Regulatory 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. -
9Regulatory 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.
10Regulatory 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.
11Two 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?
12EU 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.
13EU 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).
14Goals 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.
15Treatment 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 ?
16The battlegrounds
- 1st battleground Internet VoIP lt-gt Legacy
Telephony - 2nd battleground Internet Multimedia lt-gt NGN
Multimedia - 3rd battleground Digital Home
171st battleground Internet VoIP lt-gt Legacy
Telephony
18Legacy 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.
19Internet 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
20Internet 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).
21Internet 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
22Internet VoIP User Payments
App. A
Application-Layer
Customer
Internet
Transport-Layer
Transport 1
23Internet 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, )!
242nd battleground Internet multimedia lt-gt NGN
multimedia
25Next 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.
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28Agreed 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.
30Internet 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.
31Internet is todays multiservice network
32Next 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
33Internet-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
34NGN-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
35NGN-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!?
36Interoperability
- 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
37What then might bekey features really in favour
of NGNs?
38NGN Model Features Beyond Internet
security
end to end QoS
39NGNs 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.
403rd battleground Digital Home
41The 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.
42Final Remarks
43Convergence - 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!
44Net 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?!
45Net 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.
46Summery
- 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
47Thank you very much for your attention!
48Motivations for telcos migration to NGN