Transcript Next Generation Network“ and Challenges for future

“Next Generation Networks“ and
challenges for future
regulatory policy
Dieter Elixmann
to be presented at ITS Conference,
Helsinki, August 2003
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Outline of the paper
1 Introduction
2 Characteristics of traditional voice telephony networks
3 Characteristic features of NGNs
4 Actual solutions to get interoperability of circuit-switched and packetswitched networks in NGNs
5 NGNs and their implications for provision of services and applications
6 Directions of deployment of NGN architectures
7 Challenges for telecommunications policy and regulation
8 Conclusions
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Objectives
• Technical developments regarding telecommunications
networks
• Economic implications of NGNs
• Challenges for telecommunications policy in particular w.r.t.
network access, interconnection and unbundling regimes
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Circuit switched networks
• Transport layer; control (signalling) layer
• Different networks, however, deep integration
• Conveyance of voice information linked to transport of signalling
information
• Intelligence within the network
• Central control
• Provision of new services requires the support of standards in all
interfaces as well as in all central control units
The functions that may be added to the network are defined by the
owners of the network and limited by the nature of the network
3
Features of NGNs
NGN reference model
Application
Creation
Environment
Application
Server
Media
Server
Messaging
Server
Call Server
Access
Network
Media
Gateway
Packet Network
4
Features of NGNs
The NGN layered structure
Network Service
Layer
Softswitch
Contol Layer
Media
Gateway
Media Layer
Access and Transport Layer
Enterprise
Customers
Remote Office /
Small Office /
Home Office
Residential
Users
Mobile
Users
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Features of NGNs
Interplay of different access alternatives with a softswitch based
NGN architecture
Softswitch
PSTN
Packet
Network
TGW
TGW
PSTN
PSTN
Telephone
PSTN
Telephone
AGW
AGW
PC
BRAS
PBX
DSL
SIP
Telephone
PSTN
Telephone
PSTN
Telephone
MGW
UMTS,
GPRS
RGW
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NGNs and implications for service provision
• Very different features compared to PSTN/ISDN...
• ...in particular, separation of transport and control/signalling function
• Separation of service and transport
• A variety of new market opportunities, e.g.
– Operation of specific network elements/services
– Specification of services independent from the operator
of the transport network
– Services can be created “at the edge” of the network
• Break-up of value chain, potential for disintegration of service provision
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Disintegration of service provision
Example
• Service provider 1 is responsible for the transport from sender to
receiver
• Service provider 2 additionally carries out an error correction.
• Service provider 3 puts an e-mail application on top of this
• Service provider 4 sets up e.g. mailing lists or enables setting up
working groups.
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NGNs and challenges for telecommunications
policy and regulation
Issues analysed in the paper
• Access to and interconnection of networks, network functions
• Relevant markets, vertical integration
• Essential facilities
• Unbundling policy
• Mandated interconnection arrangements
• Interconnection and interoperability
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NGNs and challenges for telecommunications
policy and regulation
Access to and interconnection of networks, network functions: a-priori
• A multitude of Interconnection Points (RPIs)
• Location of interfaces: „within“ the network, close to the user, within
terminal devices
• New RPIs because Service Providers need specific access to and
interconnection of control or management functions of the network
• Interconnection will be demanded by a far more differentiated
number of entities
• Network related RPI components...
• ...but also service related
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NGNs and challenges for telecommunications
policy and regulation
Network and service related interfaces: functional view
INTI
at RPI-S
User
Domain,
e.g. corporate
network
INTI
at RPI-S
Network
Element
UNI
at RPI-N
INTI
at RPI-S
Network
Element
NNI
at RPI-N
INTI
at RPI-S
UNI
at RPI-N
UNI/NNI at RPI-N
User
Domain,
e.g. endcustomer
Service
Provider
Domain
Provided a RPI-N has a real standardised interconnection interface associated with it carrying
higher layer interface protocols for a RPI-S, the provider of the interface associated with the
RPI-N is not necessarily responsible for the corresponding interface associated with the RPI-S.
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NGNs and challenges for telecommunications
policy and regulation
• New „relevant markets“ may arise
Layers
Hierarchical structure within a layer
• Vertical integration: dominant firm may
restrict access
offer unfavourable terms
degrade QoS
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NGNs and challenges for telecommunications
policy and regulation
Essential facilities: agenda for examination
• Access to IP transport platform and transport of IP packets (potentially yes)
• Termination of IP traffic to an end user
(probably yes)
• Call servers and gateways
(probably no)
• Network and service related interfaces
?
• Access to locations of facilities
necessary
• Numbers and addresses
(probably no)
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NGNs and challenges for telecommunications
policy and regulation
Frame of an unbundling policy
• Integrity of the network, data security
• Technical neutrality in an environment with vendor specificity, short
technological life cycles
• Number of entities involved in particular hardware/network
functions/services to be unbundled potentially greater than 2
• Incentives to invest
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NGNs and challenges for telecommunications
policy and regulation
Mandated interconnection arrangements?
• IP-Backbone interconnection
no distortions to be expected...
...unless there is a dominant market position
• National - national ISPs: no bottleneck to be expected
• Regional/local - Regional/local ISPs: no bottleneck to be expected
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NGNs and challenges for telecommunications
policy and regulation
• National - Regional/local ISPs
•
“
”
:unlikely
– Customers have high preference for universal
connectivity
– (Usually) customers have choice
– Technically, discrimination among packets difficult
•
“
”
:possible
– Transit may be unfavourable for small ISP
– Degradation of QoS
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NGNs and challenges for telecommunications
policy and regulation
Interconnection and interoperability (IO)
• Presumably no problem in a competitive market
• If dominant market position exists incentives to enforce particular
norms and standards
• Ex-ante imposition of broad IO requirements may impede market
development
• Role of regulation:
organisation and monitoring of standard setting
development of conflict resolution mechanisms
• If standard industry protocols exist: who should be responsible for
protocol conversions?
Originating provider...
...s.t. both are using a standard industry protocol
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Conclusions
• Technically, fundamental differences between NGNs and traditional
telecommunications networks
• A multi-operator, multi-service provider and multi-vendor
environment
• Presumable long transition period, i.e. co-existence of “old” and
“new” networks
• New essential facilities?
• Complex access, interconnection and unbundling issues, especially
in the case of market dominance
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Annex
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Features of NGNs
Concept of the softswitch approach
Solutions are bundled
(hardware, software
and applications)
and are proprietary
to vendors
Customers are
locked-in to their
vendor - innovation
is more difficult;
solutions can be
expensive to
implement
and maintain
P
R
O
P
R
I
E
T
A
R
Y
Circuit-Switched
Soft-Switched
Services &
Applications
Services, Applications &
Features (Management,
Provisioning and
Back Office)
Solutions can come
from multiple vendors,
at all levels who supply
open standards-based
products.
Open Protocols APIs
Call Control &
Switching
Softswitch
Call Control
Open Protocols APIs
Transport
Hardware
Transport
Hardware
Customers are free to
choose best-in-class
products to build
their network.
Open standards
enable innovation
and reduce costs.
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