Innovation & Future Trends in Communications
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1 Innovation & Future Trends in Communications ODTR Forward-looking Programme Richard Horton Monday 26 August 2002 ITU SPU
2 Technological conservatism - a challenge for innovators: Nothing is more difficult than to introduce a new order. Because the innovator has for enemies all those who have done well under the old conditions and lukewarm defenders in those who may do well under the new Nicolai Machiavelli, 1513 A.D. 2
3 Predicting technological innovation 1. Rutherford s nuclear research no military, economic, political value 3
4 Predicting technological innovation 1. Rutherford s nuclear research no military, economic, political value 2. Lord Kelvin Radio has no future 4
5 Predicting technological innovation 1. Rutherford s nuclear research no military, economic, political value 2. Lord Kelvin Radio has no future 3. SMS 5
6 Technological innovation & regulation where s the connection? Question: Isn t telecoms regulation about: Transposing Directives Licensing Running competitions for licences Monitoring and enforcing licence conditions Resolving disputes Spectrum management, etc? 6
7 Technological innovation & regulation where s the connection? Answer: Yes and much more! Price, choice & quality objectives Market development => vibrant industry Highlight opportunities presented by technological innovation Help overcome misplaced technological conservatism 7
8 Forward-looking Programme Objectives: anticipate, understand and contribute towards meeting national needs Minimum lag approach to regulation inadequate - anticipate market developments and new issues => timely regulation 8
9 Forward-looking Programme Objectives: anticipate, understand and contribute towards meeting national needs Minimum lag approach to regulation inadequate - anticipate market developments and new issues => timely regulation Encourage technological & commercial innovation leads to deployment of new & efficient infrastructure & services => PCQ benefits 9
10 Forward-looking Programme Objectives: anticipate, understand and contribute towards meeting national needs Minimum lag approach to regulation inadequate - anticipate market developments and new issues => timely regulation Encourage technological & commercial innovation leads to deployment of new & efficient infrastructure & services => PCQ benefits Raise awareness & encourage industry to consider new & developing technologies => vibrant industry 10
11 Technological innovation & regulation where s the connection? Technological innovation helps us meet our price, choice and quality objectives Competing technologies help stimulate market competition Regulation managed path to liberalisation and competition (B. Carsberg mid 1980s) Regulation managed path towards technological, commercial and economic progress 11
12 Technological innovation & competition Technological innovation a source of healthy competition New entrants compete innovate to fill market voids Established players innovate to head off or respond to competition from new entrants Technological innovation threat of competition ever present (Disruption implications for investment & standards) 12
13 Technological innovation & competition Technological innovation a source of healthy competition New entrants compete innovate to fill market voids Established players innovate to head off or respond to competition from new entrants Technological innovation threat of competition ever present (Disruption implications for investment & standards) Technological innovation overall, an ally of regulators 13
14 Market Development Market Development Forces: Technological (T) Commercial & economic (E) Political & legal (L) Market Development (M) = f{t,e,l} 14
15 Market development & regulation Market Development Forces: Technological (T) Commercial & economic (E) Political & legal (L) Market Development (M) = f{t,e,l} (Regulation - proxy for market forces) => Regulation (R) = f{t,e,l} 15
16 Regulatory development Regulation (R) = f{t,e,l} Regulation must evolve 16
17 Regulatory development Regulation (R) = f{t,e,l} Regulation must evolve How will it evolve? (Regulation maximise consumer benefits & encourage vibrant industry) R -> max{p,c,q} R = f{t,e,l} -> max{p,c,q} 17
18 Forward-looking Programme Activities: Radar screen awareness of future developments (e.g. Software defined radio, nanotechnology, high bandwidth applications) 18
19 Forward-looking Programme Activities: Radar screen awareness of future developments (e.g. Software defined radio, nanotechnology, high bandwidth applications) Medium-term outlook scenario analyses (e.g. spectrum review, future delivery of broadband) 19
20 Forward-looking Programme Activities: Radar screen awareness of future developments (e.g. Software defined radio, nanotechnology, high bandwidth applications) Medium-term outlook scenario analyses (e.g. spectrum review, future delivery of broadband) Assessment of new issues Briefing Note Series 20
21 Forward-looking Programme - scope Technology emphasis primary focus Infrastructure: global, national, local; fixed, wireless Access technologies (e.g. optical access, wireless tails ) Network technologies (e.g. next generation, components, reliability & resilience) Applications (e.g. next generation, demands on networks, human/information & machine /information interfaces) 21
22 Applications for Next-generation networks Applications in areas such as: Business Education Medical Home care Arts Entertainment Domestic and retail markets Government Scientific research Demand Demand for new Apps Now Demand for Infrastructure Applications Infrastructure Dev. and Uptake of Apps Investment in Infrastructure Availability 22
23 What we don t do Pick technology winners Recommend, endorse or underwrite technologies, products or technical approaches Market forecasts Investment advice 23
24 New Issues Conference Issues identified: Infrastructure & access to it - (LLU, optical access, etc.) Power of incumbency (Market Operations and Regulatory Accounts Divisions) Quality & continuity of service (SLAs, NGN, Resilience) Scarcity of resources (Spectrum review & strategy, numbering, IPv6) Convergence, divergence & bundling (NGN, NGA) Universal service (Future delivery of broadband) Maturing of the sector (ODTR strategy, NGN, NGA) 24
25 Some future trends Convergence of multiple independent networks Resilience, reliability, ease of use, flexibility (selfprovisioning of bandwidth & quality ) VoIP, Videoconferencing growth areas 25
26 Some future trends Convergence of multiple independent networks Resilience, reliability, ease of use, flexibility (selfprovisioning of bandwidth & quality ) VoIP, Videoconferencing growth areas Machine-to-machine communications rapid growth Bandwidth -> free; distance -> irrelevant Internet & mobile devices growing faster than fixed phone lines 26
27 Some future trends Convergence of multiple independent networks Resilience, reliability, ease of use, flexibility (self-provisioning of bandwidth & quality ) VoIP, Videoconferencing growth areas Machine-to-machine communications rapid growth Bandwidth -> free; distance -> irrelevant Internet & mobile devices growing faster than fixed phone lines Competition from ad hoc/parasitic networks Optical -> closer to end users; wireless tails Continuing technological diversity in network provision 27
28 Thank you Richard Horton (+353) hortonr@odtr.ie 28
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