Prof.  Rui  Santos  Cruz  rui.s.cruz@tecnico.ulisboa.pt

Se7ng  the  Context

Mestrado  em  Engenharia  de  Telecomunicações  e  InformáDca  Master  Degree  (MSc)  in  TelecommunicaDons  and  InformaDcs  Engineering

Engenharia de Serviços Services Engineering

TODAY

Telecoms  EvoluDon  

Market  compeDDon  

Drivers  to  Convergence

2Se$ng  the  Context

How  telecoms  look 3Se$ng  the  Context

First  telephone  demonstrated  in  around  1875

First  personal  computers  emerged  in  the  early  1960s  (Apple  /  IBM?) Limited  funcDonality,  no  network  connecDon

First  mobile  phone  appeared  in  1973,  was  the  size  of  a  house  brick  and  could  only  do  analogue  voice

In the beginning….

How  telecoms  look 4Se$ng  the  Context

Home  phones  were  made  out  of  “bakelite”  and  were  used  for  voice  only

Computers  increased  in  processing  power  and  funcDonality  and  connected  to  the  network  via  a  simple  64kb/s  modem

Mobile  phones  shrank  drasDcally,  and  could  do  voice  and  limited  data,  (9.6kbps  and  SMS)

Yesterday….

How  telecoms  look 5Se$ng  the  Context

Home  phones  are  frequently  cordless  (DECT),  with  advance  network  funcDons  (caller  ID,  call  waiDng  …)

Computers  have  greatly  increased  processing  power  /  mulDmedia  funcDonal  and  connect  to  the  Internet  via  xSDL/cable/Fiber  (up  to  10Gbps)

Mobile  phones  have  increased  funcDons,  (Music/Photo/HD  Video),  and  the  networks  (LTE/UMTS/GPRS)  support  faster  data  rates  (+100  Mb/s)

Today….

How  telecoms  look 6Se$ng  the  Context

Tomorrow….?

Internet  Service  Providers

Mobile  Operators

Fixed  Operators

New  THREATS

How  telecoms  look 7Se$ng  the  Context

Tomorrow….?

Internet  Service  Providers

Mobile  Operators

Fixed  Operators

New  THREATS

How  telecoms  look 8Se$ng  the  Context

Tomorrow….?

Internet  Service  Providers

Mobile  Operators

Fixed  Operators

New  THREATS

Battle  

for  the

 custo

mers  $

$$

Market  CompeDDon

Market  compeOOon  is  increasing  

Incumbents  squeeze  incumbents  (internaDonally)  

Mobile  operators  squeeze  fixed  operators  

Fixed  operators  fight  back  with  Wi-­‐Fi  soluDons  

Mobile  operators  are  squeezed  by  Wi-­‐Fi  

New  players  (MVNOs,  Google,  Skype),  squeeze  everyone    

Core  revenue  (voice)  is  saturated  and  profit  declining  

Whilst  voice  revenue  stagnates,  Data  revenue  increases  

Network  costs  are  too  high,  and  old  equipment  need  replacing  

Networks  are  complex,  hard  to  scale  and  interoperate  

Operators  are  Oed  to  vendors  for  dedicated  technologies  

Roll-­‐out  Dme  for  new  services  is  too  long  

Also  customers  are  pushing  for  more  innovaDve  services

9Se$ng  the  Context

Market  CompeDDon

Fixed  line  usage  is  reducing  dramaDcally  for  “classical”  services  

Mobile  use  is  increasing  steadily  even  though  penetraDon  is  already  high.  

Broadband  Internet  deployment  shows  a  rapid  growth  trend.  

10Se$ng  the  Context

Changing Telecom trends

Market  CompeDDon 11Se$ng  the  Context

Tomorrow

Yesterday Tomorrow

GamingMail

Television

Telephone

News

CompuOng

Content  and  Services

Converged  Phones

IPTV VoD

InteracDve  gaming

My  contacts  My  messages  My  calendar  My  presence  My  applicaDons  My  content

Market  CompeDDon

OpOon  1:  SOck  head  in  sand  and  ignore  the  storm  

ConDnue  down  the  same  path,  upgrade  exisDng  kit  

OpOon  2:  Evolve  

simplify  the  network  (reduce  complexity  and  cost)  

become  access  independent  (mobile  /  fixed)  

offer  new  services  quickly  and  on  demand  

concentrate  on  content  and  services

12Se$ng  the  Context

Operators must evolve or become extinct

Market  CompeDDon

Most  operators  seem  to  have  chosen  OpOon  2:  Evolve  with  Next  GeneraOon  Networks:  

MigraDon  path  to  an  IP  based  network,  whilst  maintaining  exisDng  services  

Reduce  COSTS  (CAPEX  and  OPEX),  and  increase  ROI,  (RETURN  ON  INVESTMENT)  

Common  foundaDon  for  both  fixed,  mobile  and  enterprise  services  

Quick  creaDon  and  deployment  of  innovaDve  new  blended  services  

Flexible  dimensioning  

Advanced  centralised  network  control  

Anract  third  party  service  providers  without  loosing  control  of  the  network  

Open  interfaces  allow  vendor  independence  

13Se$ng  the  Context

Operators fight back with Next Gen. Networks

Convergence

A  technology  that  is  revoluOonising  the  telecoms  world:  

Convergence  of  the  “Market”  

Convergence  of  the  “Service”  

Convergence  of  the  “Device  /  Terminal”  

Convergence  of  the  “Network”

14Se$ng  the  Context

What is Convergence?

Convergence

Convergence  of  the  Market  

Commercial  Convergence    

Bundling  of  fixed,  mobile  and  data  subscripDons  

Subscriber  can  access  fixed,  mobile,  and  internet  services  from  a  single  operator  

Ideally  this  would  allow  for  one  provider  and  one  bill  for  mulOple  service  (unified  billing)

15Se$ng  the  Context

What is Convergence?

Convergence

Convergence  of  the  Market  

France  Telecoms’  mobile,  fixed  broadband,  IPTV,  and  business  services  in  France  and  the  U.K.  took  the  Orange  SA  brand  in  2006.    

Portugal  Telecom’s  mobile  (TMN),  fixed  broadband,  IPTV  (MEO)  and  business  services  took  the  MEO  brand.  

Portuguese  OpDmus  (mobile),  Clix  (residenDal  IPTV  and  fixed  broadband),  Novis  (business  services  and  networks)  ,  ZON  (cable  broadband,  satellite,  TV  and  IPTV)  and  Lusomundo  (contents)  fused  to  NOS  SA  brand.  

Everything  Everywhere  is  the  company  that  runs  the  Orange  and  T-­‐Mobile  brands  in  the  UK,  and  launched    in  2012  its  superfast  4G  (LTE)  brand  –  EE.

16Se$ng  the  Context

What is Convergence?

Convergence

Convergence  of  Services  

Subscribers  access  same  services  regardless  of  whether  they  are  using  a  fixed  or  mobile  connecOon    

MMS  (mulDmedia  messaging)  on  a  fixed  or  mobile  phone  

Presence  services  on  a  computer  or  mobile  device  

Email  access  on  a  computer,  mobile  or  fixed  phone  

Voice  service  (VoIP)  on  fixed,  mobile  device  or  computer  

TV  service  on  TV  sets,  mobile  devices,  computers

17Se$ng  the  Context

What is Convergence?

Convergence

Convergence  of  Devices  

One  device  may  integrate  various  access  types  

This  may  include  Mobile  (GPRS  or  3G  or  4G)  enabled  with  wireless  technologies  (Bluetooth  and/or  WLAN  802.11  b/g/an…)  

Also  may  refer  to  “one  device  does  all”  with  enhanced  funcDons  such  as  music/photo/data/video/voice/messages…

18Se$ng  the  Context

What is Convergence?

Convergence

Convergence  of  the  Network

19Se$ng  the  Context

What is Convergence?

Trends 20Se$ng  the  Context

What do Operators Want?

Trends 21Se$ng  the  Context

What do Vendors Want?

Trends 22Se$ng  the  Context

What do Customers Want?

Convergence

Replace  many  “stove-­‐pipe”  single  service  networks  with  a  single  “converged”  network:  

 Remove  mulDple  disparate  OSS  (OperaDons  Support  Systems):Order  Management,  Billing,  Customer  Care,  Provisioning,  AcDvaDon,  etc.  

 Avoid  “interworking”  issues    

 Create  new  opportuniDes  (services)  and  faster  service  enablement    

 Provisioning  Intelligence  layer  and  ApplicaDon  Plauorms

23Se$ng  the  Context

Rationale

Convergence 24Se$ng  the  Context

The NGN Architecture

Convergence

Challenge:  Maintaining  TradiOonal  services  over  NGN:  

PSTN/ISDN  EmulaOon  

Provide  PSTN/ISDN-­‐like  service  capabiliDes  using  session  control  over  IP  interfaces  and  infrastructure  

Emulate  a  PSTN/ISDN  network  from  the  point  of  view  of  legacy  terminals  

PSTN/ISDN  SimulaOon  

Provides  PSTN/ISDN  service  capabiliDes  and  interfaces  using  adaptaDon  to  an  IP  infrastructure  

The  provision  of  PSTN/ISDN-­‐like  services  to  advanced  terminals  (IP-­‐phones)  or  IP-­‐interfaces.

25Se$ng  the  Context

Not without Challenges!

IP  Users PSTN  Users?

Telecoms  EvoluDon  

Market  compeDDon  

Drivers  to  Convergence

26Se$ng  the  Context

SUMMARY

Any  QuesDons? 27Se$ng  the  Context