Telecom Industry

A Key Force Behind Enrichment and Globalization

Biji John
Senior Manager
CDMA Wireless Planning and Design
Richardson/ 2005 August 20

1 CIE, USA 2005

 Global Telecom Infrastructure
Global Information and Communication Technology Spending
Global ICT Spending (US$ Billion)

12.00

10.00

2.8 8.00

GDP US$ Trillion

6.00

4.00

2.00

0.00

United States

European Union

China (Mainland)

Japan

India

Germany

United Kingdom

France

Italy

Brazil
Telecom Service Spending Top 10 Countries

• Forecasted to top $1 Trillion in 2004 Data Courtesy: http://www.cia.gov/

• Annual growth of 4.7% until 2007
• Voice accounts for 2/3 of the 2004 revenue
• Data and IP services closing the gap on voice

2 CIE, USA 2005

Global Telecom Infrastructure
Oceanic Lines
Telephony
• International telephone relay
• Domestic telephone relay
• Fixed telephony
Video
• TV relay (cable and broadcast)
Data
• Private networks (VSAT and others)
• ISP-to-Internet backbone
• End-user internet (small office, home office,
residential)

TechTalk
Terabit: 1,000,000,000,000 (that is, 1012) bits
Plano Cable: -----------1,500,000 (1.5Mbps download)
Plano DSL: --------------750,000 (750KMbps download)
Dial-up: ----------------56,000 (56Kbps download)

Data: courtesy http://www.telegeography.com/ee/free_resources/

sb2004_exec_sum-01.php

3 CIE, USA 2005

Global Telecom Infrastructure
Satellite
Telephony
• International telephone relay
• Domestic telephone relay
• Fixed telephony
Video
• TV relay (cable and broadcast)
• Direct to Home (DTH) TV
Data
• Private networks (VSAT and others)
• ISP-to-Internet backbone
• End-user internet (small office, home office,
residential)
• In-flight entertainment
• Mobile asset management

Data: courtesy of Futron Corporation

http://www.satelliteonthenet.co.uk/white/futron4.html
4 CIE, USA 2005
Local Telecom Infrastructure

Local
• Last mile access Metro
• POTS – Plain Ordinary Phone
Service • Metro Area Network (MAN)
• Data Services • Links to local access
• Still remains the bottleneck • Aggregates traffic for long-haul
• Over-built to address future
growth

Long-Haul
• High capacity optical fiber
• Overbuilt to address the
growth

5 CIE, USA 2005

Work Telecom Infrastructure

Work

Work Space
• POTS – Plain Ordinary Phone
Service
• PANS – Pretty Amazing New Stuff.
Enterprise Network – PC, routers,
firewalls servers, web applications
• SIP Clients
• T1 or Fiber connectivity

6 CIE, USA 2005

Home Telecom Infrastructure

Home
Home
• Copper or Optical Fiber “to the curb”

• Wireline
• Phone Service
• TV
• Broadband (DSL, Cable)

• Wireless
• Satellite TV, internet, phone service
• Mobile and Fixed wireless services
• 802.11 and/or Bluetooth

7 CIE, USA 2005

 Telecom Enrichments
Voice Services
Voice Services
-Switched
- Still the dominant
-Mobile
- Steady growth
-VoIP
- Fastest Growing

Data: courtesy http://www.telegeography.com/ee/free_resources/

tg2005_exec_sum.php

8 CIE, USA 2005

Telecom Enrichments
Internet Services Data: courtesy http://www.telegeography.com/ee/free_resources/
tg2005_exec_sum.php

Internet Internet Internet

- E-services - E-commerce - E-entertainment
-Voice - B2Consumer - Web TV
-E-mail - B2B - Web Radio
-Web Services - Web Games
-Information Access - Web Marketing
-Financial
-Social Services
9 CIE, USA 2005
Telecom Enrichments
Internet Services: Consumer Services
Consumer Services
-Voice
- Average 42% growth from 2005 to 2009
- Class 5 and 4 switching centers moving to IP
- Wireless carriers interconnecting MSCs with IP
- Cable providers moving to VoIP (Added Service)
-E-mail
- Fastest growing communication method
-Web Services
- Distance Learning, Community Services, Dating Services
-Information Access
- “Google it”, Ask.com
-Financial
- Personal banking, on-line bills, on-line tax, day traders
-Social Services
- City
-On-line utility payments, property tax information
- State
-Child protective services
- Federal
-Access to local representatives, tax information, Medicaid, Medicare, etc..

10 CIE, USA 2005

Telecom Enrichments
Internet Services: E-Commerce – B2C
Motivator % Inhibitors %
Credit card
Worldwide B2C Revenue Convenience 59% worries 75%
Return
1200 Saves time 41% hassle 67%
Want to see
1000
More selection 35% it in person 59%

Prices 27% Junk e-mail 58%

800

1998
$B

600
2004 Site Category %

400 Toys 86%

Apparel 73%
200

Department stores 39%

0 Books, music and
United States Western Japan Asia/Pacific ROW movies 17%
Europe
Region

Examples

11 CIE, USA 2005

Telecom Enrichments
Internet Services: E-Commerce – B2B

Worldwide B2B Spending

7
6
5
4
US$T

3
2
1
0
2000 2001 2002 2003 2004 2005 2006

• Business to Business • Business Productivity

• Products, Services • eServices (HR, Payroll, 401K,etc)
• Beneficiary – SME and SOHO • eProcurement (Dell)
• Business to Partner • eSupplyChain
• Purchasing, Outsourcing, Security • eInventory
• Beneficiary – Large Businesses • Outsourcing

12 CIE, USA 2005

Telecom Enrichments
Internet Services: E-Commerce – B2B:Outsourcing

• Business Productivity
• Outsourcing
• Facilitated through the global
telecom infrastructure
• Instant access to information and
people around the globe
• 24/7/365 support and call centers
• Businesses expect 30-50% cost
savings.

13 CIE, USA 2005

Telecom Enrichments
Internet Services: E-Entertainment

• Interactive TV
• Growing as advertisements are inserted into the Web TV
programs (CNN, Nickelodeon, ABC, CBS….)
• $200M spent of Internet advertisement vs $65B on broadcast
television.
• SBC and VZ example (Fiber to the curb)

• Music on Demand
• Broadcast Radio Æ Internet Radio Æ Satellite Radio
• Digital Music and portable devices
• 29% of all music sold in the US in 2004 was burned to a CD

• Interactive Games
• Drew in $11.5B in revenue, including advertisement
• Draws in all ages
• Internet facilitates the growth.

14 CIE, USA 2005

Telecom Enrichments
Where do we go from here?
Home Work

Unified (Laptop, PDA, Mobiles)

15 CIE, USA 2005

Telecom Enrichments
Where do we go from here?

Infrastructure
Home
• Last mile will still be the bottleneck
• Broadband applications will drive
entertainment and communication
• Wireless will dominate the home
network
• 802.11 and/or Bluetooth
• WiMAX
• Wireless access devices
• Wireless print servers
• Wireless web cams
• Digital divide needs to be considered

16 CIE, USA 2005

Telecom Enrichments
Where do we go from here?

Work
Work Space
• Abundant bandwidth
• Plethora of information
• Wireless PCs and mobile
devices will grow
• 802.11 and/or Bluetooth
• WiMAX
• Wireless access devices
• Security will be the primary
concern.

17 CIE, USA 2005

Telecom Enrichments
Where do we go from here?

Local/Metro
• Moderate growth in bandwidth
• Cities adapting wireless access
points:
• 802.11 and WiMAX
• Public services on-line
• Efficiencies gained by telecom
services need to be adopted to
public offices and public
schools.

18 CIE, USA 2005

Telecom Enrichments
Where do we go from here?

Convergence Applications
Fixed to Mobile convergence Broadband Mobile Services

• WiFi to WiMax – true mobility with • IM and SMS growth

access nodes
• VoIP (core and access)
• Seamless access from home,
work and travel. • Location based services
• E911
• Mobile broadband
• B2C Services
• Streaming video
• 5-40Mbps download • Business Effectiveness
technologies • Telecommunication
convergence
• Inventory control
• Instant access to resources and
information

19 CIE, USA 2005

 Since the advent of the phone, telecommunication had a
profound impact on individuals, institutions and
governments. Telcom will continue to enhance all aspects
of our lives for years to come.

Biji John
johnbi@nortel.com

20 CIE, USA 2005