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Telecommunications
markets &
main network structures
Node (switching
Transmission media & transmission)
(p2p-connection)
network
Concentration
Network access
Agenda
Sector inside
Global view
Dutch view
The main network structures (1)
The telephony network
Technical overview
Local Loop
Networks decomposed
PSTN tour
The main network structures (cond)
Cellular Networks
CATV Networks
The Internet
When networks meet
Interconnection
2
1. Sector inside
Global view
Dutch view
Sector inside
1200
Sub/lines growth
Fixed tel
Cellular
Internet
800
400
19
00
19
20
19
40
19
52
19
56
19
60
19
64
19
68
19
72
19
76
19
80
19
84
19
88
19
92
19
Sources: Siemens & ITU 96
Teledensity = fixed=mob 20
00
20
04
Teledensity
Cable
W- Eu
95%
10,2%
E-Eu
30%
3,3%
US
103%
25,1%
Japan
98%
62%
Row
13%
World
25%
4.1%
Sector inside
20
40
60
80
But:
Sector inside
Pharmaceutical
Media
Telecom
Retail
Telecom +
equip (est)
Automotive
TMI
Oil, Gas
Petrolefum
Banking &
Insurance
bn
0
200
400
600
800 6
Sector inside
Telephone lines
Per 100 inhabitants)
100
Above
Average
Below
Average
GDP/capita (USD)
1
100
1,000
10,000
100,000
Sector inside
65.88
12 Finland
61.22
2 Denmark
65.61
13 Singapore
60.58
3 Sweden
65.42
14 Luxemburg
58.58
4 Switzerland
65.10
15 Belgium
57.72
5 United States
65.04
17 Germany
55.40
6 Norway
64.67
20 Japan
52.45
7 Korea
63.42
21 France
51.44
8 UK
63.00
24 Czech
50.95
9 Netherlands
62.25
26 Spain
48.80
10 Iceland
62.03
36 UAE
37.23
11 Canada
61.97
47 China
31.95
Ranking compiled by
ITU based on:
Mobile telecom
numbers
Internet numbers
Infrastructure
development
Competition
Legislation
Sector inside
DAI Top 12
United Kingdom
DAI movers>>
9
Sector inside
Rank
'98
Economy
Rank
'02
Change
Korea (Rep.)
20
22
Taiwan, China
13
20
14
13
7
Singapore
Denmark
21
New Zealand
-9
11
19
Australia
-8
30
36
South Africa
-6
17
23
France
-6
11
United States
-6
10
Sector inside
Software
11%
IT services
20%
Computer
HW
16%
Carrier
Services
44%
End user
comm equip
9%
11
Sector inside
By
service/product:
1994
2003
Telephony
386
54%
455
32%
Mobile
50
7%
414
30%
Other
services
128
17%
268
19%
Equipment
158
22%
253
18%
2001
By region:
2002
2003
2006
North America
358,8
363,1
374
420,7
Western-Eu
232,9
249,1
260,7
291,9
Asia-Pacific
288,7
323,3
355,7
448,1
Rest of World
180,7
185,1
192,1
232,5
total
1061
1121
1183
1393 12
Sector inside
40
20
m$
0
1992
1994
1996
1998
2000
2002
2004
13
Sector inside
14
Sector inside
65%
45%
25%
Fixed
mobile
5%
1994
60
2003
Minutes in KPN's PSTN
bn min/yr
85%
40
Total
minutes
Domestic
Intenet
20
Mobile term.
Internationa
0
1998
1999
2000
2001
2002
2003 est
15
Sector inside
Sustainable fundamentals?
Dutch view
17
20,0%
Total ICT
15,0%
Carrier Services
Total IT
10,0%
5,0%
0,0%
2000
2001
2002
2003 est.
-5,0%
3.000
2.500
2.000
sourc: EITO
1999
2000
2001
2002
2003 est.
1.500
1.000
500
0
BE/LU
FR
DE
NL
SE
UK
US
18
PC penetration is strong
EITO stats show overall
penetration (business +
home PCs)
Home PC penetration is
traditionally high, due to
favorable tax plans
Over 79% ~ 5.3m HH
80
70
1999
2000
2001
2002
2003 est.
60
50
40
30
20
10
BE/LU
FR
DE
NL
SE
UK
US
Internet Indicators
25,0%
Host count
nov 2003
ccTLD
registrations
ccTLD
as % of pop
20,0%
15,0%
10,0%
2.000.000
5,0%
1.000.000
0
0,0%
Belgium
France
Germany Netherlands
Sweden
UK
19
Rapidly growing
2000
7330
6915
6569
2280
2964
10-15
ADSL
2001
2003
HH
6316
61662
~90
%
3420
3668
37682
145
340
9503
14%
650
9353
14%
2002
penetration
Mobile subs
5767
9678
12234
11983
120354
CATV connections
6120
6200
6159
6194
n.a.
93%
Sat receivers/subs
320
330
418
535
n.a.
8%
5700
6300
6900
n.a.
7500
#PCs5
pop
74%
47%
3
4
20
1999
2000
2001
2002
01-02
101
138
148
127
-14,2%
66
83
84
73
-13,1%
186
263
280
264
-5,7%
96
92
81
73
-9,9%
15
14
11
-36,4%
21
Players by category
Fixed telephony
Connections (>90%)
Traffic
Local >80% (85-95)
National <70%
International ~55%
C(P)S operators
Tele2, Scarlet/Onetel.
MS: 26% (2002)
of which 74% CPS
AltNets
UPC, Essent, BC-providers
CATV
5 Mobile players
KPN Mobile
Vodafone
T-Mobile (DT)
Orange (FT)
Telfort
KPN Mobile
40%
T-Mobile
14%
Telfort
Orange 8%
8%
KPN Mobile
41%
T-Mobile
16%
Vodafone
27%
23
Other
33%
KPN brands
34%
Wanadoo
8%
Zon
11%
Other
18%
Chello
18%
Zon
6%
Tiscali
6%
Wanadoo
15%
KPN brands
23%
@home
14%
24
Dutch financials
France
13%
Sweden
3%
16000
mn
20000
Fixed data
12000
UK
19%
Belgium/
Lux 3%
Mobile telephony
8000
CATV services
Carrier services total
4000
Total Telecom
0
2001
2002
2003
2004
2005
Germany
21%
Other
36%
Mobile
telephony
40%
Fixed data
22%
25
26
Samuel F. B. Morse
27
Antonio Meucci
Regional/transit
exchanges
Transmission
media
Transit/toll
(Class4 switches)
Local exchanges
(Class 5 switches)
Main equipment:
Digital circuit switches:
Lucents 5ESS
Ericsson AXE
Nortels DMS
Alcatels Alcatel1000
Transmission equipment:
Lucent
Cienna
Nortel
Alcatel
Local Loop
(transmission media)
Access network
Analogue, ISDN, corporate connections
Subscriber
28
29
Street cabinet
900
pairs
f.o.-ring
Business area
Point of Presence
100
pair
cable
2 pair
cable
Cable
distribution
point
30
Co-Location facilities
Room to locate equipment
In the US this is called UNE (Unbundled Network Elements)
31
DSLAM
DSLAM
Equipment room
Incumbent
DSLAM
ADSL
Equipment
Telephone
Exchange
Transmission
equipment
F.O.-trunks
Access
network
MDF
Basement
fleslas
Cable
32
Data Service
Providers
Small
For SMEs
ISPs
Other DSL
Service providers
Large
ISP
DSL
facilities
Last
mile
Tiscali
12Move
Best deal
seekers
Zonnet
(BabyXL)
~100
(~325)
(~200)
Het Net
Planet
XS4all
NovaXess
(~85)
Wanadoo
KPN
(~750)
KPN
33
3. Networks decomposed
34
Transmission
modelled view
Switching/routing
Transmission
Transmission-media
Why a network?
Point to point (p2p) /can-to-can (c2c)
communications.
Node (switching
Transmission media & transmission)
(p2p-connection)
network
Concentration
Network access
36
PoP/CO
Access
Network
Trunk or
backbone
network
37
39
Issues
40
G
A
C
D
F
E
G
A
B
F
E
B
G
A
Ideal
cell
pattern
Real
cell
pattern
B
C
Frequency
(Hz)
200kHz
channel
Fictious
cell
pattern
Frequency
reuse
distance
Usage of
frequency and
time: TDMA (GSM)
1Mhz
TS-1 TS-2
B
A
TS-8
time
41
Cell characteristics
Coverage:
Depends on technology(CDMA, TDMA)
Design parameter:
In building, in car, outdoor coverage
Voice/data traffic to accommodate
Voice traffic (Erlangs)
offered data speeds
(higher data speeds -> smaller cell sites -> more
antennas needed
Height of antenna
Transmission power (regulated)
Cell radius indication 300m (indoor coverage) 30km (open area coverage)
42
Internet
MSC
Core transmission
network
Subscriber
environment
RNC
UTRAN
B-nodes
(UMTS terminology)
Core
Network
PSTN
43
Interconnection
to other
networks
GSM network
Radio Access
Network
(mobile local loop)
MT
EIR
BTS
1
BSC
MT
BTS
MT
BTS
Core network
AUC
HLR
VLR
MSC
BSC
PSTN
incumbent
G-MSC
To other
MSCs
Celco-2
Celco-3
GSM terminology
MT = mobile terminal
BTS = base transceiver station
BSC = base station controller
BS = base station
44
(4-5000
sites)
WAN transport
Systems, connecting
geographical spread
components
Base
station
controller
(100-140
sites)
Core Network
components
4-8
sites
Housekeeping
Voice
switch
Telephone
exchange
Network
Interconnection
Public
Switched
Telephone Network
e.g KPN-NL
Local
Loop
Phone
@Home
45
Roaming
Roaming is: using the RAN of another operator, when:
Out of range from the home network
In reach of network with roaming agreement
An Telefonica Moviles Spain customer visits the Netherlands and roams with KPN
KPN recognizes a vistor and its home network (Moviles, ES)
KPN inquires Telefonica Moviles database; Customer roaming granted
KPN registers user in its VLR, Moviles registers its customer in its VLR
Incoming calls switched from Moviles to KPN
Outgoing calls handled by BEN, account info (CDRs) send to Moviles
Tariffs determined by Moviles billing system according to customers contact
Clearig between KPN & Moviles according roaming agreement
EIR
AUC
EIR
VLR HLR
AUC
E
F
E
G
A
D
F
MSC
B
C
G
G-MSC
F
E
F
E
Bilateral
Roaming
agreement
Spain
Telefonica
Moviles
C
G
B D
A
D
MSC
E A B D C The Netherlands
KPN
D
G E
VLR HLR
F
A
D
C F
E
B
C
G
A
C
G
E
B
B
C
46
Mobile networks: a
plethora of standards
Mobile telephony networks have
evolved since the 1980s in 3 generations
First Gen (1G)
1 G, analogue transmission, limited
to no security
Many different standards per region
(almost no roaming)
48
GSM to 2.5G
Radio Access
Network
EIR
BTS
BSC
BTS
BTS
Core network
BSC
AUC
VLR
HLR
Other voice
Netowrks
MSC
G-MSC
SGSN
GGSN
IP Networks
Internet
50
Third Generation
Developed during the 90s
Part of the ITU IMT-2000 program
Aim to consolidate, to one homogeneous system
Harmonized use of frequencies & technology = scale!
Global roaming
Multi Media traffic
Higher speeds 100s of kbps
Convergence with Internet transport protocol (IP)
However, development diverged
3G Partnership Program (3GPP)
51
3G-WCDMA
A.K.A. UMTS
Most likely migration path from GSM/GPRS to
3GOpts for the new GSM in Europe and (parts of)
Asia.
Support of UMTS-GSM roaming and handover
Relies on the GSM/GPRS core network
52
3G-CDMA2000
(IS-95)
cdmaOne
1xEV-DO
Data only
1xEV-DV
Data & voice
Separate data
carrier
2.4Mbps peak
Integrated DV
3.1Mbps peak
Towards
All IP
Future
53
Spectrum issues
Better suite for asymmetrical traffic (TDD)
1.6MHz of spectrum needed
Cheaper terminals
Siemens heavy weight promoter with China
Other vendors picked up: huge market
54
55
Cable Networks
Started as Community Access TV
Networks 1950s (100s of connected
homes)
Mainly US and EU
City planning driven: getting rid of
rooftop aerials
A wired broadcast network
Designed for distribution of Radio and
TV signal: putting the ether in a cable
From head end to connected homes
(Homes passed/-connected)
Head end functions:
Receiving terrestrial and satellite
channels
Signal processing and re-transmission
on the cable network
20-100 TV channels + FM-radio band
Value Added Services
Millions of
Rooftop aerials vs head ends
56
Very One-Way
57
DC
10s of
DCs
DC
HE = Head End
DC = Distribution Centre
SC = Sub Centre
GA = Group Amplifier
FA = Final Amplifier
20-30
SCs SC
GA
SC
SC
DC
HE
DC
SC
FA
(1015 FAs)
(20-50
users)
mini-star
SC
(5-10
GAs)
58
Network outline
SDH Backbone
(Fiber rings)
(Master)
Headend
Coax
Group Amp
Fibre Node/
Sub Center
HE rooftop
59
60
1,17Gbps
41,8 Gbps
Asia
Pacific
US &
Can
162,5 Gbps
Eu
0.7 Gbps
14.1 Gbps
Latin
Am
0.45 Gbps
Africa
600Mbps
61
Internets structure
International Internet-backbones
Worldcom
Sprint
C&W
AT&T
Qwest
Global Crossing
Level3
NTT
Internet Exchange>>
Other
IX
Other
IX
IN-IX
YOUR ISP.xx
ISP 1
DSL
ISP 2
ISP 3
telephone
Cable
Internet access
Mail
DNS
Internet Access
xDSL access
Cable access
Telephony access analogue/ISDN
Satellite access
62
To/from Asia/Pac
1,17 Gbps
To/from US
162,5 Gbps
To/from L-A
600Mbps
To/from Africa
0.45 Gbps
=IX
63
64
Development of access speeds
100000
Technology released
Trend Line
10000
Docsis1
ADSL
1000
V.32bis
10
V.22
V.23
1
Bell
103
V.22bis
VDSL
V.90
V.34bis
V.92
Push existing
nets to
the edges
V.32
V.21
Digging
the
Streets
Using (milking)
PSTN
20
20
20
10
20
07
20
03
20
02
20
01
20
00
19
98
19
95
19
93
19
91
19
88
19
84
19
78
19
64
19
64
0,1
19
60
speed in kbps
100
V.fast
V.FC
V.34
Docsis2
ADSL-2
65
66
User A dials B
(e.g. fixed-mobile)
(Mobile)
Terminating fees
a
user
Network of
Operator A
Networkinterconnection
interface
Originating fees
Network of
Operaator B
b
user
access
point
67
Interconnection issues
Legal battle ground: interconnect obligations
Forcing incumbents to open their networks
Level playing field is now existing and its of interest of
most parties to interconnect
Current battle ground: controlling end users tariffs
Cartel between operators to keep priced high
Mobile Terminating Access (MTA) in Eu
SMS > MMS tariffs
Measure, assign SMP
Unregulated future?
Internet as the ubiquitous network
Everything is just on application on top of
Regulation on a higher level: spam, DMR etc.
68
Originating services
Carrier Select
Regional Access
Carrier Pre select (CPS)
Point
FRIACO (Flat Rate Internet
Access Call Originating)
MIACO (Minute Internet Access
Call Originating)
Transit
network
Call terminating services (call
completion!)
Case:
Relation ship
Customer A of CPS-operator
Customer B of CPS-operator
Customer C of Incumbent
Scenarios
A dials C
B dials A
C dial A
Area Y
Sub network
Area X
Sub network
Local Access
Point
Subscribers, connected to
Local exchanges of the
incumbent
Incumbents PSTN
69
70
Branch-out-sheets
71
Circuit switching
Packet switching
Information transport in
packets: Internet
Each packet is labelled
Source & dest. Address
error and flow control
information
Concurrent connections
No additional interfaces
or transmission lines
Packets/frames/cells
Service degradation: Delay
72
Circuit switching
A circuit offers:
constant capacity = QoS
inefficiency
Circuit
switch
Switching
matrix
73
Packet switching
A packet offers:
No guarantees: first come
first serve
Efficiency
Scalability easy/easier
C A
BA
A
Ivir.nl
server
buffers
Packet
switch
Packet
Label
Data
Packet switch
routing table
74
Ingredients: layering
Layer
Protocol
service
The message
(did you understand what I mean?)
01111111010101010100101000010001111
011111001001110101011001100011101001000000
00110001101001101010011110010010
Ingredients
76
Wireless transmission
Looks simpler: no wires needed?
The medium is the ether
No digging!
Almost infinite capacity
But can only partly used
Regulation needed: frequency allocation
The ether is just 1 cable so frequencies need to be
assigned to avoid the tower of Babel
Usage of the frequency bands and applied technology
often regulated as well
Some (or most) frequencies are perceived/positioned as
scarce resources (also depending on the region)
Based on National Frequency planning fitting in Regional
and World Wide agreements, e.g.
License exempt
77
0,1 mm
Cosmic
radiation
1 mm
gamma
10 mm
0,03
rntgen
300
THF
terribly high freq.
EHF
extra high freq.
SHF
super high freq.
100 mm
visible light
10 m
infrared
100 m
1 km
LF
low freq.
10 km
VLF
very low freq.
100 km
1 = 10 10 m
MF
medium freq.
Radar
Wave length
HF
high freq.
Radio
30 MHz
300 m
100 km
30 GHz
300 MHz
30 m
30 m
VHF
very high freq.
infrared
0,03 m
300 GHz
3 GHz
1m
8000
microwave
UHF
ultra high freq.
ultraviolet
4000
Wavelength
radio navigation
3 kHz
Frequency
78
79
Satellite orbits
Van Allenbelts
GEO
MEO
LEO
500-2.000 km
GEO = Geostationary
MEO = Medium altitude earth orbit
LEO = Low altitude
12.000 km
6371 km
35.767km
80