Trend and Challenges in Telecom Convergence

Ten-lee Hwang April, 2005

Agenda

Trend of Telecom Convergence Development in 3G, VOIP, and WLAN Challenges Posed to Service Operators

Trend of Telecom Convergence

- Forces from computer and media industries

Telecom Industry (communication)

mobility 3G/Wireless Internet Wireline Wireless/Cellular ISDN Intranet/Internet PSTN PC-WAN Carrier class PC-LAN Computer Industry (computer) PC/Servers desk top computing main frames xDSL electronic publishing and entertainment

Media Industry (content)

Trend of Telecom Convergence

- Starting from traditional telecom

Wireless
Satellite

Cordless

PSTN

GSM

Mobile

Fixed
ADSL, Cable Modem

Cable TV AM/FM

Broadcast

VHF/UHF
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Trend of Telecom Convergence

- Convergence in delivering network technologies
Convergence of new technologies offers opportunities and risks for communication / content players.
Wireless VoIP GSM @ Home

WLAN operator

Fixed Line operator

Voice Mobile Convergence Data Data Voice Fixed

Mobile operator

TV broadcast, Cable channels, Radio broadcast

Broadcast
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Trend of Telecom Convergence

- Mobile evolution
Mobile technologies are rolling out 3G and HSDPA to provide a access network with higher speeds.
Speed (bit/s) HSDPA
10M High quality video 1M Medium quality video 384 k Mobile office

3G/ WCDMA

EDGE
Internet Graphics 115 k 56 k 10 k Messaging SMS 1k
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GPRS

Internet Text Voice

GSM

Trend of Telecom Convergence

- Summary
Convergence of new technologies actually bring convergence to services and contents
From mobile to wireless
PC/WLAN Celluar/Wifi handsets ADSL

Wireless
M-Taiwan

From fixed to wireless

Voice Mobile Convergence to services and contents Data

Voice Fixed Data

Mobile evolution from 2G to 3G

Contents

Cable modem/setup box

TV 3G

Broadcast
From analog to digital, e.g., DAB/DMB
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Agenda

Trend of Telecom Convergence Development in 3G, VOIP, and WLAN Challenges Posed to Service Operators

Development in 3G, VOIP, and WLAN

- 3G WCDMA/CDMA evolution
2002 2003

2004

2005

2006

WCDMA

WCDMA (UMTS)
3GPP Release 99 Rel. 4

HSDPA
Rel. 5
1) As of Sep04, 39 W-CDMA operators launched. An additional 76 operators had either launched pre-commercial W-CDMA networks or were in the process of deploying their networks at the end of the period. 2) 12 M sub worldwide and Japan,UK,Italy dominate WCDMA uptake

CDMA

CDMA2000 1X

1) Around 100 operators in 60 countries in six continents have launched CDMA2000 1X services. 2)CDMA2000 1X reach 120M sub worldwide 3)Asia-Pacific continued to be the fast-growing w/89M users and Japan & Korea remain the largest market.

CDMA2000 1XEV-DO

Enhanced EV-DO
1) Therere 16 operators commercial launch CDMA2000 1XEV-DO service. 2) 10 M sub worldwide
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Development in 3G, VOIP, and WLAN

- 3G lessons learnt
A few things have been important seeing the 3G launch.

More and more countries and operators launched 3G as the technology and handsets become much more ready, demonstrated in recent GSM events. Network readiness was found to be critical for 3G take up. Services and pricing were also found important

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Development in 3G, VOIP, and WLAN

- VOIP industry value chain
Device ZyXEL WellTech D-Link Channel Portal & IP Phone USB Phone VoIP Gateway VoIP Mobile(WLAN +GSM)

Yahoo e-Bay Pchome Skype

Portal Site I.E. Internet VoIP

Value-add Service Application

GPRS SW download
VoWLAN ADSL Wireless

Hinet Seednet

ISP/ISR

From Napa consulting groups research, 15% of all desktop phones shipped are new VoIP enabled in Y2003.

Transport

Cable Modem

NCIC CHT

TDM

ATM Switch

H.323

50% of all desktop phones deployed will be VoIP enabled in Y2006.

Nortel CISCO Alctel

Network

PABX
Switch 99 00

Gatekeeper Media gateway SIP Multiservice switching IP PBX 01 02 03 04 Today 05

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Development in 3G, VOIP, and WLAN

- Rapid growth of WLANs
There are total 57,627 hotspots at 42,803 locations in 75 countries. Top 10 Cities are London (940), New York (725), Paris (692), Tokyo (472), Hong Kong (438), Singapore (365), Chicago (346), San Francisco (341), Berlin (298), and Kuala Lumpur(288). Voice will be the next big thing to emerge in the hotspot market.
Top 10 Countries

2.United Kingdom 7,402 4.France 2,789 3.Germany 4,009 6.Italy 718

8.Canada 654 5.Japan 1,225

1.United States 17,291

7.Spain 672

9.Taiwan 643 10.Australia 558

Source from www.jiwire.com, Oct. 2004

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Development in 3G, VOIP, and WLAN

- M-Taiwan status
Currently, total 19 wireless broadband application demo sites are sponsored by Industrial Development Bureau Ministry of Economic Affairs (MOEAIDB, ). M-City for Taipei and Kaohsiung were BOT wireless cases in M-Taiwan Plan.
Wireless broadband application demo sites sponsored by MOEAIDB 92 (8) 93 ( 13 )

BOT: M-Taipei City

Taipei Taoyuan Kinmen Hsin-chu Taichung Chang-hua Yun-lin Ch'ia-ai T'ai-nan Kaohsiung Ping-tung Demo sites sponsored by MOEAIDB
To start from transportation applications 13
50% City Sub, Y2005 MRT, Y2004

I-lan

90% City Area, End Y2005

Hualien

To cover 800K home subscribers and 10K public subscribers

BOT: Kaohsiung City

Source from www.moeaidb.gov.tw

Development in 3G, VOIP, and WLAN

- From mobile to wireless
With convergence in mobile and wireless, customers can choose which technology to use to make voice calls.

IP world - WLAN

Cellular world

Cellular and WLAN compete for voice and data traffic

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Agenda

Trend of Telecom Convergence Development in 3G, VOIP, and WLAN Challenges Posed to Service Operators

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Challenges Posed to Service Operators

- Linking up celluar and WLAN
The incumbent has to continue listening customer needs even if the technologies are disruptive. Future service image
Japan

Similar for T-Mobile and SK Telecom

One stop service billing Enterprise DB Remote access broadband Intranet email TV conference TV Phone

Overseas
3G areahigh mobilitycharge by usage

WLAN FOMA service WLAN service

WLAN areahigh speedflat rate

Remote access Intranet broadband

email TV Phone

Fixed line broadband

3G WLAN
TV conference

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Challenges Posed to Service Operators

- Service operation requires is a process of improvement
Access network and technology alone cannot create satisfied customers there are many things additional for network operations and service operations will be a challenge to new entrants

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Thank You

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