* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download presentation
Survey
Document related concepts
Video on demand wikipedia , lookup
Cracking of wireless networks wikipedia , lookup
National Broadband Plan (United States) wikipedia , lookup
Policies promoting wireless broadband in the United States wikipedia , lookup
Net neutrality wikipedia , lookup
Net neutrality law wikipedia , lookup
Piggybacking (Internet access) wikipedia , lookup
Passive optical network wikipedia , lookup
Network tap wikipedia , lookup
Airborne Networking wikipedia , lookup
Deep packet inspection wikipedia , lookup
List of wireless community networks by region wikipedia , lookup
Transcript
VoIP Driving the Restruction of Telecommunications Prof. Kaili Kan Beijing Univ. of Posts & Telecommunications ITU Future of Voice Workshop Geneva Jan. 16, 2007 Is VoIP Killing Telecom ? Telcos’ claim: • VoIP is IT invading telecom • VoIP robs voice revenue from telcos • VoIP takes a “free ride” of telcos’ hard-built network infrastructure • …… • “The Martians are coming !” Telecom sector in turmoil: WHY ? Current Structure of Telecom Vertical integration: (OSI 7 layers) Network + Service History background: – Shortage of bandwidth – Single service:voice However, time has changed. Surplus Optical Bandwidth • Bandwidth — telcos’ core product • Cost of bandwidth: – Infinite bandwidth over fiber – Cost approaches zero: cross-Atlantic < USD$0.0001/min. (ITU 1996) • Price of bandwidth: – Redundancy: Each telco builds its own fiber cables for vertical integration – Price to be driven to zero even faster than cost The Killer Law of Economics: oversupply kills supplier Telcos killed themselves by oversupplying bandwidth Why blame it on VoIP ? Nothing to do with VoIP, except …… Telcos’ Options for Survival Option #1: Break “network + service” vertical integration: – Build less, use more: open cable capacity to service providers – Telcos become “hollow pipes” Option #2: Insist on “network + service” vertical integration: squeeze revenue/profit out of inefficient usage of bandwidth, Fact: many telcos chose Option #2. Telcos’ Strategy to Survive • Voice: transmission (no “service”) – Small bandwidth – Lack of price elasticity • Broadband data/video: – Large bandwidth – High price-elasticity Strategy: high-price for narrow-band voice, low-price for broadband data/video Classical case of 3rd class price-discrimination: Price reversely proportional to elasticity Conditions for Price-Discrimination • Shortage of supply – True before: copper, 1G, 2G, etc. – NOT true now: fiber, 3G, Wi-Fi/ WiMAX • Insulation of markets: no “cross-border smuggling” Role of VoIP • Breaks insulation: “Smuggles” voice into low-priced broadband market • Eliminates price-discrimination of voice vs. data/video • Forces telcos to go back to Option #1: – – – – Service providers share telcos’ fiber cable Telcos become “hollow pipes” Vertical network-service integration broken However, with fiber cables already overbuilt, ……too late. Future of Telecom Internet/IP technology: – Independent of physical network – Terminator of vertical integration by nature Vertical integration broken: – Networks: bandwidth, access – Services: liberated Telcos: – Fixed network telcos: degenerate into “hollow pipes” – Mobile operators: extinction (VoIP + Wi-Fi/ WiMAX) Vision • Internet — “Of the people, by the people, for the people” • VoIP — restructuring telecom (a revolution) • Breaking telcos’ “network + service” vertical integration equals to convergence China at a Crossroad Background: – Telcos — State Owned Enterprises (SOEs) – “National security” issue VoIP situation: – Officially “illegal” nationwide – 4 “experiments” by Telecom and Netcom in own territory since mid-2005 – Proliferation in underground / gray market VoIP deployment: only a matter of time Thank You [email protected]