What now for the telecom industry

ATIE Forum June 2004 Singapore

Ferrie HuChief Scientist

Movers and Shakers in the Convergence Era

Traditional Telecom Networks

Gateway SWMobile Network

Local SW

Private Network

PSTN

Traditional Telecom Networks

• Base on circuit switch voice service system

• Dedicated real circuit set up the call

• Simple terminal

• Copper circuit for end connection

• Service reliable up to 99%

• Fully monitor from end to end

• More regulated on technology and operation

• Technology development follow the channel base exchange switching system

PSTNAccess

WirelessAccess

Multi-ServiceAccess

ISPAccess

NetworkControl Point

Core SW

EnhancedServices

Telecom Networks Today

Telecom Networks Tomorrow

• Routing base Data communication service

• Intelligence routing control protocol

• Computer base end-user terminal

• Simple IP communication protocol

• Minimum Licensing and Regulatory

• Open network platform for cross industry service and application provider

• New technology challenge

PSTNAccess

WirelessAccess

UtilityServices

Access

Broadband Network

EnhancedApplication

Services

Telecom Networks Tomorrow

Digital TVServices

LeaningServices

FamilyServices

OfficeServices

MusicServices

Several dimension for Telecom Regulation

• Best outcome for market forces

• To foster on competition development

• To protect the competition

• To achieve some social objectives ( e.g. Universal Service )

• Manage the public resources ( e.g. Radio Spectrum, Numbering, Public space for ducts…)

• To ensure compatibility and interoperability

• To avoid interference and safety hazards

• Establish the technical standards

Moving to Broadband Demand

• On fast Internet access, for web browsing, and download service…

• Application over Internet

• Business and SEM moving to Voice and Video-Conferencing

• Home networking for Home security control and remote monitor

• Home office and e-commerce

• Home entertainment on pay TV and music and gaming

Hong Kong Broadband Regulatory

• Today, Hong Kong has a population over 6.8M and 2.2 M households– 1.2 M broadband connection ( 18% )– 1.1 M connection to households ( 50% )

• Liberalization the Fixed network market• Two approach

– Facilitating construction the Self-built access network to bypass the local loops

– Implementing the Type-II interconnection policy• Allow the operator to adopt the access technology base

on business point of view ( e.g. fibers, cable or radio )

Television Broadcasting License HK

• Domestic Free TV service license ( 2 )

• Domestic Pay TV service license ( 5 )

• Non- Domestic TV service license ( Satellite )

• Other TV service license ( Hotel, and not more than 5000 domestic households )

• License exempted from serving below 2,000 persons within an area of a radius of three kilometres.

HK Television Broadcast in Movement

• Hong Kong is reviewing the broadcasting regulatory– Technological convergence– Regime to facilitate the industry development– Room for regulation streamlining– Media ownership

• To consult the public in this year• Planning to introduce digital terrestrial television• Market-led approach to adoption the DTT technical

standard• ATV/TVB shell start their existing programme at 2006

What now for the telecom industry

The Case Analysis

                                                                            

it is telecom industry focus business ?

Access Swi tching Network Bi l l ing CS Marketing Sales

Network Provi der Servi ce Provi der

Maxi mum MVNO

Servi ceProvi der MVNO

Mobi l e NetworkOperator

Mobi l e Vi rtualNetwork Operator

Servi ce Provi der

Network Provi der

NetworkProvi der

TeleCo Operation & Management Model

Minimum MVNO

Thank You