Emerging Trends

1
Emerging Trends

• Hyungsoo, KIM

2
Share of Traffic
Voice 9
Voice 27
Legacy Data 6
IP 64
IP 85
Legacy Data 9
(2002)
(2005)
(RHK report, 2002.11.)
3
Internet Revenues
2001 15.3 billion 2002 14.7 billion (-4 )
billions
Quarter/Year
(STARtrax2002 conference)
4
Declining Revenue/Bit
Traffic 107
Traffic 85
Revenue 17
Revenue -11
Revenue/bit -45
Revenue/bit -52
(2001)
(2002)
(STARtrax2002 conference)
5
Serious Crisis
Service Characterlessness
Differentiated services
Low Price
Business Competition
Network Capacity
Network Engineering
6
The old, but still available paradigm
7
Paradigm Vs. Serious Crisis
Revenue generated area
Expense reduced area
Differentiated services
Network Efficiency
Network Engineering
Technology Convergence
Capacity Optimization
Low Price
(Provider Side)
(Customer Side)
8
Will be NGN the solution ?

• What is NGN ?

(Workshop on NGN, 9-10 July 2003, Geneva)

• Packets for all types of services
• Keep niceties of circuit-switched network (QoS,
  security, )
• Fixed mobile convergence
• Broadband access is becoming a business xDSL,
  FTTH, cable, WiFi etc. to allow
• Internet access combined voice, data, video
  services VPN

Revenue generated area
Expense reduced area
Network Efficiency
Technology Convergence
Capacity Optimization
High Value
(Provider Side)
(Customer Side)
9
Will be Expense reduced ?

• Packets for all types of services converged
  transport based on IP over heterogeneous networks
• Keep niceties of circuit-switched network
  Internet Traditional telecom PSTN
• Fixed mobile convergence Telecom Radiocom.
  broadcasting
• -gt Converged network,
• will give us Capex/Opex saving.

• Only when legacy PSTN becoming obsolete
• (too little OPEX/CAPEX gain, particularly in
  Core)
• Not so much benefit in KT network

10
Will be Revenue increased ?

• Fixed mobile convergence
• Broadband access is becoming a business xDSL,
  FTTH, cable, WiFi etc. to allow
• Internet access combined voice, data, video
  services
• -gt Converged service,
• will give us new chances for revenue

• Bundle/package of current services will
  introduce a big competition
• Total market volume may be decreased

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A long way to NGN

• PSTN/ISDN evolving towards NGN oriented
  platforms
• Replacement of obsolete PSTN/ISDN network
  elements 2005 onwards
• Packet Data networks evolution (Fixed-Internet
  convergence)
• Evolving from the current High Speed Internet
  access (ADSL, VDSL, FTTH, WLAN ) platforms
• To offer new generation Services 2005 onwards
• Mobile convergence (IMS) 2006 onwards

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Nevertheless (Network)
(Any/All Applications e.g. voice , data , video)
Anything Everything
2. Need to seek for the maximum commonality in
(IP based) protocols that are to work across
different types of networking technologies
1. NGN core and access trends is convergence
between fixed and mobile services / architecture
/ protocols, etc.
Internet Protocol (IP)
Everything
(Any All Network technologies)
3. Diversity of user service requirements and
network capabilities will be key issue to achieve
Convergence
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Nevertheless(service)
(Any/All Applications e.g. voice , data , video)
Anything Everything
1. Service and network separation will encourage
innovative services
2. New MM-services will be driven by the
fix-mobile-broadcasting convergence
Internet Protocol (IP)
Everything
(Any All Network technologies)
3. Most added value services are based on voice,
data, andmobility convergence and require
support beyond best effort QoS, security, etc.
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Target
Revenue generated area
Expense decreased area
Converged service/network environment
Network Efficiency
New service from new tech.
Technology Convergence
CAPEX OPEX saving
High/various quality of service
Capacity Optimization
High value-added service
(Provider Side)
(Customer Side)
15
Summary

• A crisis moment is already come
• NGN will be the solution
• Faster ROI on network should be proved
• New revenue-generating service is the Key

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Thank you for your attention !!! hans9_at_kt.co.kr R
apporteur of Q.6/SG13 on ITU-T (Performance of
IP-based networks and the emerging GII )