Welcome by Claudio Carrelli EURESCOM Director

EURESCOM WorkshopInter-Operator TMN&OSS

Prague 23-24 March 1999

Main highlights

• The new environment

• The major trends

• A role for EURESCOM

1999: What after one year of telecom liberalization?

• Incumbents are “under pressure”

• Regulators are “under fire”

• Mobile never had it “so good”

The new scene after one year

• European telecomms market (175 B $ ) is the single most important contributor to economic growth in the EU

• By mid-October 1998, in EU a total of:

• 218 operators offering national telephone service (58 in Sweden)

• 284 offering international services (100 in UK)

• 77 mobile operators.

Governments perspective

• Fear of the “net”

• Need for “big policies”

• Protection of “citizens”

Consumers perspective

• Less confidence on, or even fear of technology

• Appeal for new telecom “gadgets”

• A doubtful concept on the value of “privacy”

Industry trends

• “Big” is beautiful

• “Free” is beautiful

• “Short term” is beautiful

• ….but ..

• ……..

• Where is the strategy?

The new strategy

• Need for flexibility (managing the complexity is the real challenge!)

• Cost cutting is a defensive approach and not a strategy!

• ..and cost cutting weakens even more defence capabilities!!

Innovation dilemma (I)

• “Great companies can fail because they do everything right”

The relevance of innovation

• R & D turns “money” into “know- how”, but ….

… it is “innovation” that turns know-how into “money”

(The top 300 world IT companies spent 12.8 % more for R&D in 1997 than in 1996!)

Innovation dilemma (II)

• Innovation: the industrial religion of the late 20th century: a new theology

• Creating value by exploiting some form of change: be it in technology, materials, organization, prices, taxation, demographics, or even geopolitics

• Today in USA more than half of economic growth is due to companies that barely existed 10 years ago

Opportunities of TechnologyThe Birth of New World Giants

Digital Digital SwitchingSwitching

NORTEL

Cellular Cellular TelephonyTelephony

NOKIA

Personal Personal ComputerComputer

MICROSOFT

InternetInternet CISCO

?Optical Optical NetworksNetworks

What network?

• network “intelligence” vs “stupidity”

• Circuit vs packet

• Active networks (like highways structures)

• ..but look beyond the PC!

Infrastructure

• Do not measure traffic: add circuits!

• The death of distance

• The case of submarine cables (155 Mbit/s overseas capacity offered at 4-6 B$ for 20 years)

• ..Where are the new limits of Telecoms?

A changing scenario for R&D

• …from a linear process, based on progressive building up of specialised technological know-how,

• ..to a far more casual and discontinuous process, fueled by “technology breakthroughs” and “creative ideas” ….keeping more and more in mind ..the human centredness

The two dimensions of IS

• The visible or “hardware” dimension– Network infrastructure– User terminals

• The invisible or “software”dimension– Society, citizenship, culture– The role of content– The “human centredness”

The concept of gift for Telcos

• Mobile

• Internet

• …and then?

• Wireless multimedia

• E-commerce

• ….and..

And a very challenging gift

• TV and IP convergence

• IP has been the “real driver” for data and voice integration

• Will IP also be the “real driver” for the new convergence?

Moving to IP

• Is IP “la mode”?

• Is it economically convenient?

• Is it the triumph of packet switching?

• ...or..

• …is it an attempt by new entrants to take the lead on telecomms network technology?

The pace of evolution

• Try to think in a log scale

• The case of the Moore law

• The chess board example

The chessboard

What is behind?

Three messages

• Do not be dogmatic!

• Look to present and future market;. ...but remember: my “old” market is no more my “own” market

• Rethink all over again,….and.. do not be afraid to co-operate (competition should not prevent co-operation)

EURESCOMEURESCOM

A Virtual Company for Collaborative R&D

www.eurescom.de

EURESCOM Objectives• to stimulate and co-ordinate the common participation

of its Shareholders in collaborative R&D projects including field trials and pilot projects

• to enable the development of harmonised strategies• to contribute to Europe-wide service deployment and

service usage• to contribute to European and world-wide

standardisation• to contribute to the work of international bodies and

relevant European R&D programmes

The objectives of co-operative R&D

• Co-operate to expand the cake

• Compete to get the best piece of the cake!

Our major achievements

• Over 130 Projects carried out in first 6 years of EURESCOM

• Extensive analysis and specification material available to Shareholders and the industry at large

• Mechanics and efficiency of quickly establishing Work Programmes now mature

~3000 Man Months Per Year

EURESCOM is currently performing about 40 Projects covering:

Strategic Studies

Networking

Services and Applications

Middleware, Service & Network Management

Internet & IP Technology

For more Information: http://www.eurescom.de

Some Information about EURESCOM

EURESCOM Work Programme 1998 SS6%

MW40%

IP12%

Net27%

S&A31%

Total MM: 2522

SS Strategic StudiesS&A Services and ApplicationsMW Middleware, Service and Network ManagementIP Internet and IP TechnologyNet Networking

EURESCOM Work Programme 1999

Total 2792 MM in 1999

SS13%

S&A13%

M&M22%IP

11%

Net41%

GI50%

PF50%

GI/PF ratio in 1999

What are our next steps?From a technology perspective:• Fixed/mobile service integration

– fixed and mobile networks will gradually converge– wireless terrestrial and satellite technologies will offer

economic complements to existing fixed networks

• IP-based technologies for infrastructures– novel services will be created on IP platforms– Higher portability of services across networks and

systems

What are our next steps?

From a managerial/market perspective:

• increase the efficiency related to the operation of networks across domains– interconnectivity and interoperability

• expand the ICT services market through:– innovation and the early exploitation of new

technologies

WP 199 Highlights• Human Centredness focussing on sustainability and social

impacts of ICT in everyday life, cross-cultural issues and the impact of teleworking.

• Agents - developing methodologies for agent-based telematics services

• Middleware - assessing technologies and issues of management, scalability and dependability through building demonstrators and experiments.

• Operational Support Systems - addressing the suitability of gateway products, requirements raised by POTS/IP and fixed/mobile convergence.

WP 199 Highlights

• Internet - Projects include: real-time services, IP multicast, Internet roaming, security for mobility in IP, IN-Internet integration, supporting H.323 by IN.

• UMTS and FMC - investigating the evolution towards UMTS architectures, the various mobility protocols for UMTS and assessing the implications of emerging radio technologies.

• IP over WDM optical networks - defining the distribution of network functionalities across the different layers composing a transport network, exploiting the potential of emerging Gigabit IP routers.

The relevance of TMN&OSS

• A new multioperator environment

• A higher need for services interoperability

• Less and less single responsibility for end to end services provisioning

• Need for standardization!

Welcome again to all of you

• Thank for your attention and have a nice Workshop!