INTUG - International Telecommunications Users Group Asia-Pacific Communications Managers Forum

IP networks and services

16 June 2004, Singapore



Good morning Ladies and Gentlemen


Last December, our national leaders adopted the Declaration of Principles and Plan of Action at the World Summit on the Information Society (WSIS) in Geneva. This set out challenges for future work on Internet governance, concerned with networks and services using the Internet Protocol. Achiving an information society requires a great deal of work on national ICT strategies with a difficult mixture of technical and policy, present and near future issues.

At the heart of this is the need to ensure that competition is allowed to deliver the benefits to users that should flow from innovation.


Internet traffic

One task that the WSIS established was for further work on Internet eXchange Centres (IXCs).

There was a very useful debate on this at ITU Telecom Africa in May. This made clear that there remained significant lessons to be learned and changes to be made. In some cases incumbent telecommunications operators were operating a bottleneck, by limiting and overcharging access to the international undersea cables.

Underlying this is the issue of domestic and international leased lines, to which we will return this afternoon. One example is that for international circuits from Africa to the USA, the charges to ISP are paid 80 per cent to the African telecommunications operators and 20 per cent to the operators in the USA.

A separate debate has been underway for half a decade on International Internet Connectivity (IIC). This resulted in the adoption, only the week before last, of an annex to ITU-T Recommendation D.50. However, it is a very weak sort of guidance that seems very unlikely to provide much progress for least developed countries.

By comparison, work on IXCs seems much more fruitful and an ITU workshop on this topic would be very welcome.

The exchange of Internet traffic will remain a significant issue up to the second phase of the World Summit on the Information Society (WSIS) in Tunisia in November 2005.


Voice over Internet Protocol

VoIP has been the subject of discussion at the OECD and the ITU in the last few days. AT&T was clear in emphasising Service over IP (SoIP), rather than just VoIP.

It has also been the subject of consultation by any number of national regulators, for example, Germany and Spain, plus the European Commisison and the CEPT.

The issues raised in these discussions include:
VoIP is being deployed very quickly and often invisibly to users. It is a speed that is significantly faster than policy makers usually have to keep pace with. For example, some policy makers still consider callback to be illegal yet VoIP is considerably more disruptive.

There is also the issue of the regulation of the interconnection of VPNs, an issue with INTUG has raised at APECTEL.


Mobile networks

As VoIP prices tumble, the question arises of the high cost of calls to mobile networks. It is making them look more conspicuous and appears likely to reduce the ability of MNOs to continue to increase the number of minutes of calls originating on their networks. VoIP should allow fixed operators to recover some lost ground.

There is an unpleasant catch for mobile network operators with the introduction of IP capabilities. They claim they can deliver video to a handset, but if it is to be affordable then the cost per bit must fall to a level where voice is effectively free. Yet, they do not know what is the level of demand or the willingness to pay for video and other new services. To complicate matters, there are alternative networks to deliver entertainment to mobile phones. These include Digiral Audio Broadcasting (DAB) and Digiral Video Broadcasting (DVB) plus satellite broadcasting. All three have a data-casting capability, even to individual devices, so that they can compete with data transmission services. There are a range of different models in Wi-Fi and WiMax that are still the subject of experiment..

The roll-out of 3G has been very slow, except in Korea and Japan. Even 2G or 2.5G services such as GPRS are too expensive to use extensively. This is an issue that Rosemary Sinclair will return to tomorrow at CommunicAsia..


Ubiquitous networks

In Japan the preferred term is ubiquitius network, rather than Next Generation Networks (NGN). Massive bandwidth will be available wherever we are.

Both for operators and users, it can be attractive to bundle the costs into a single monthly bill for services over IP. However, this may be anti-competitive, as players leverage power from one sector where they are dominant into another. Exclusive deals on content may disadvantage other broadband players. .



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Last updated 26 June 2004.