Electronic Bulletin / Number 12 - June, 2005

Versión Espańol

Broadband and convergence of telecommunications

1. Introduction

This presentation will first define the concept of broadband and will then discuss its impact today on the phenomenon of the convergence of telecommunications. It concludes that bandwidth has become the raw material of such convergence.

2. Broadband network defined

The first step is to define what we mean by broadband network. A network is a series of interconnected resources which, managed in some fashion, interact to meet the needs of its users. Although the meaning of the term broadband is somewhat unclear, to classify sizes of ranges of communications bands, two criteria are used: transmission speed and bandwidth.

  • Transmission speed

The transmission or transfer speed is a measure of the amount of information the network can absorb per unit of time. Therefore, the faster the transmission speed, the greater the network’s bandwidth will be.

  • Bandwidth

Bandwidth is also a measure of capacity so that the greater the network’s bandwidth, the more information the network can support in a given time period.

With that clarification, we can now provide a definition of a broadband network as one able to transport large amounts of information (high bandwidth) in short periods of time (high transmission speed), which may even become subject to the will of network users (on-demand communications).

Broadband penetration of networks is a gradual process, one naturally governed by the demand of users of new services and of the availability of infrastructure to support them. Throughout this process, the two aspects of integration play an important part: the supply of multiple services, whether or not of different types (service integration) on a single network (network integration).

3. The convergence phenomenon

Today’s service providers have invested huge sums in their access and transport infrastructure with the initial aim of forming part of a large service monopoly. The advantages this affords are market presence and market capacity. The disadvantage is that, often, the network is based on old, inflexible technology that cannot be adapted to rigorous modern service demands. Some business competitors have improved their infrastructure, but have paid a high price: the above-mentioned regulatory framework means that infrastructure investment cost recovery periods are lengthy and that, at today’s swift pace of technological change, such infrastructure becomes functionally obsolete before costs are truly recovered. However, the challenge is yet more basic: even if a business participant has the technological and financial means to invest in a new technology, often the company will not make the investment as, under current regulatory structures, any newly-developed technology must immediately be made available to market competitors, thereby eliminating any advantage that the innovative provider might enjoy.

The phenomenon of convergence is real and necessary. It has three elements: convergence of technology, the apparently inexorable evolution towards a single grouped technological network capable of providing a vast array of marketable services; convergence of companies, the tendency of companies to merge as a means of consolidating their capacities; and convergence of services, which leads companies that have converged to use knowledge management techniques to develop customer profiles so that they can create solutions targeting their specific business challenges.

A series of specific observations may be made in connection with convergence of services, the ultimate objective of the three aspects of the convergence phenomenon. Quality of service (QoS), which may be measured and maintained, has become a marketable product, and the industry’s most widely repeated mantra has been that services should be based on customer demands rather than on technological possibilities.

4. Conclusion

As the price of bandwidth continues to fall and as it becomes more widely available, applications with ever-greater bandwidth requirements are being developed. Bandwidth has therefore become one more component in the series of services providers offer. Today, providers are developing technologies that will soon enable them to offer the bandwidth of modems, DSL, and high speed wireless technologies as if they were Local Multipoint Distribution Services (LMDS).

 

Miki Saito
Co-rapporteur
Study Question III:  Broadband Access Technologies
Working Group on Advanced Network Technologies and Services
e-mail: [email protected]

 


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