Future Technology Trends and ONP Implications

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Future Technology Trends and ONP Implications

• Andrew Houghton and Peter Scott
• European Commission
• Directorate-General XIII
• ahou_at_postman.dg13.cec.be

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OUTLINE OF PRESENTATION

• Introduction European Commission
• Convergence and Competition
• EU Telecoms Policy
• Liberalisation
• Open Network Provision
• Interconnection
• Technology Developments
• ACTS Programme

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CONVERGENCE and COMPETITION

• The Green Paper
• The Convergence of the Telecommunications, Media
  and Information Technology Sectors, and the
  Implications for Regulation
• The Internet / Electronic Commerce / Digital
  broadcasting / Broadband access networks old
  rules no longer fit and old rationale may no
  longer be valid
• Principles / Issues
• Focus on bottlenecks at a either end of value
  chain balancing fair competition with
  investment incentives Horizontal v. vertical
  regulation Key role for competition rules
  Workable rules Defining market boundaries

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THE 1998 POLICY PACKAGE
HARMONISATION MEASURES- Interconnection (July
97) - ONP Adaptation (July 97) - Licensing
(April 97) - Satellite PCS (April 97)
- Amendment to Voice Telephony (CP June 97)
LIBERALISATION MEASURES - Cable TV (Oct 95) -
Mobile (Jan 96) - Full Competition (March 96)
?
?
GUIDELINES / NOTICES - Costing / Financing
USO- Access Guidelines- Internet Voice
Telephony Notice
RECOMMENDATIONS - Interconnection Pricing - Cost
accounting (to be published)
?

?
?
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LIBERALISATION

• Alternative Infrastructure / Cable TV (from 1996)
  
• Mobile Communications
• Own or Third Party Infrastructure
• Direct Interconnection
• DCS1800 and DECT Services to be licensed
• 1.1.98 for Voice Telephony and Infrastructure
• transitional periods allowed for certain Member
  States

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OPEN NETWORK PROVISION

• The framework for Europe-wide regulatory
  principles
• Harmonisation of network interfaces and
  interoperability
• Interconnection Directive
• Open access to public telecoms networks and
  services
• Costing and financing of Universal Service

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UNIVERSAL SERVICE

• Scope Voice Telephony / Emergency and Operator
  Services / Payphones / Soft disconnection /
  Call-barring and Touchtone dialing Access
  supporting Fax Modem
• Costing and Financing
• Net Cost Approach
• Universal Service Fund or Supplementary Charges
• Recover unfair burden
• Who contributes ?

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INTERCONNECTION - KEY PRINCIPLES

• What is Interconnection?
• Physical / Logical linking of networks
• What is Significant Market Power?
• Not just market share
• Costs and Pricing
• Additional obligations if SMP established
• Non-discrimination
• Cost-orientation
• Mobile-fixed interconnect
• Requests for access
• Cost-accounting / Separate accounting

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INTERCONNECTION

• Priority to Commercial Negotiation
• NRAs given powers to intervene
• Obligations / Rights to Interconnect
• Provision of (i) public telecoms network or
  publicly available telecoms services (ii) Leased
  lines (iii) International circuits, or (iv)
  Service providers allowed interconnect rights
  under national licensing regime
• Transparency
• Publication of standard interconnect offer (1
  July 1997)
• Interconnect agreements open to any interested
  party
• Unbundled offerings

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LICENSING IN A LIBERALISED ENVIRONMENT

• Licensing to continue at national level
• Preference to general authorisations, but.....
• Individual licences
• Use of radiofrequency, numbers or rights of way
• Universal service obligations
• Special competition safeguards AND
• Public voice telephony / or public networks / or
  networks using radiofrequency

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EU RTD Framework Programmes
2nd
3rd
4th
5th Framework Programme
Info Society
ACTS
RACE 2
RACE 1
1987
1999
1991
1995
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What is ACTS ?
Advanced Communications Technologies and Services

• 220 projects
• Each project has partners from several
  countries
• Partial funding by the EU for EU countries
• non-EU participation
• RTD projects lead to trials
• Concertation process (between projects)

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Community Funding for ACTS
175 MECU 112 MECU 81 MECU 124 MECU 108
MECU 47 MECU 34 MECU 681 MECU
Interactive Digital Multimedia Services Photonic
Technologies High-Speed Networking Mobility and
Personal Communication Networks Intelligence in
Networks and Services Quality, Security and
Safety of Communication Systems and
Services Horizontal Actions
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BROADBAND ACCESS TECHNOLOGY

• Fibre-To- The - x (FTTx)
• Hybrid Fibre-Coaxial (HFC)
• Twisted-pair copper/ digital subscriber line
  (xDSL)
• Wireless (UMTS, MBS...)
• Digital Broadcast (satellite, terrestrial)
  (DBS...)

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Photonics Projects in ACTS
OPTICAL NETWORKS
MULTIPLEX TRANSPORT
SUB-SYSTEMS COMPONENTS
SWITCHING ROUTEING
CUSTOMER ACCESS
WOTAN KEOPS OPEN METON PHOTON MEPHISTO MOON PELICA
N DEMON SONATA
TOBASCO B-BANDLOOP PLANET COBNET FRANS PRISMA
UPGRADE SPEED MIDAS ESTHER HIGHWAY
VERTICAL PHOTOS CAPITAL FAST BLISS OSC ACTUAL
PLATO REPEAT LOIS APEX
HORIZON
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Access Networks 1998
Optical Fibre
Distribution Point
Coaxial Cable
Wireless/Radio
Copper Pair
Flexibility Point
Core Network
Local Switch
Remote Node
CaTV Head-End
Video Server
Internet Server
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Broadbandloop
Voice/ datamux
Office ONU
Single Business customer
POTS
2Mbit/s
Legend OLT Optical Line Terminal ONUOptical
Network Unit SIM Subscriber Interface Module NT
Network Termination ODN Optical Distribution
Network
ISDN
ONU
ATM 25
Multiple Residential/ Small Business
customers (Reuse of existing copper in customer
drop)
ONU with multiple VDSL cards
NT
n x VDSL
Passive Splitter
SIM
SDH Ring (STM-1 or STM-4)
ATM 25
OLT
ODN
155Mbit/s
ONU with E1, POTS, ATM25, Ethernet cards
n x 51Mbit/s
n x 51Mbit/s
Multiple Residential / Small Business customers
(new network)
SIM
ATM 25
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Access Network 2002
Optical Fibre
Optical Network Interface
Copper Pair
Coaxial Cable
Wireless/Radio
Voice Services
Service Integration Point
Splitting Point
Core Network
Data Services
SIP
VOD Services
CaTV Head-End
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Access Network 2002 (R)
Wireless/Radio
Optical Network Interface
Optical Fibre
Copper Pair
Coaxial Cable
Voice Services
Service Integration Point
Core Network
Splitting Point
Data Services
SIP
VOD Services
CaTV Head-End
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METON Optical Network in Metropolitan Area

• Key Features
• Direct links to distanced nodes
• Off-loads transit traffic of intrmediate nodes
• Savings in number of line terminals
• Distribute traffic load dynamically
• Effective cable-cut protection

Backbone Node
Servers
ATM
OXC
ATM
OXC
ATM
OXC
OXC
ATM
OXC
OADM
Local Node
OXC
OXC
Access Node
ATM
ATM
OADM
OADM
ATM
ATM
OADM
OADM
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TOBASCO Phase 3Fibre to layer C, WDMPON
CM
TV
1.5?
CATV Tx
CATV Rx
Cable Contrl
BB
APON ONU
APON OLT
1.5?-
140 split Bi-directional Coax Network
164 split 4 622/155 2488/622 WDMPON CATV
overlay
Capacity/LUP 975/250 kb/s optical 800/200 kb/s
coax
6
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CONCLUSIONS

• Comprehensive and Flexible Policy Framework for
  1998
• Role of Competition Rules set to grow
• Technology-neutral Approach
• Technology Evolution and Convergence will be Main
  Drivers of Market Developments
• Minimum Regulation is Best Regulation

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Further Information

• EUROPA Server
• http//www/europa/eu/int
• ISPO Server (Information Society Project Office)
• http//www.ispo.cec.be
• CORDIS (Community RD Information Service)
• http//www.cordis.lu/
• ACTS
• http//www.infowin.org/