Role of pure network operators. TKK Telecom Forum Varatoim itusjohtaja Ilari Anttila, Digita Oy
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1 Role of pure network operators TKK Telecom Forum Varatoim itusjohtaja Ilari Anttila, Digita Oy
2 Role of pure network operators Who are we? About the changes that are taking place Network sharing - why? Why is Flash 45 0 MHz such a promise? Wireless broadband why now? Our plans and current status 2
3 Digita is part of the international TDF Group Turnover 89 M in employees Owner TDF Group TDF Group turnover 926 M in employees Owners Charterhouse Capital, CDC Equity, Caisse des Dépôts et Consignations, employees 3
4 Shared broadcasting infrastructure all over Finland Network supervision and m aintenance 24 h all over the country 38 m ain stations 200 m ast sites 1000 transm itters MW radio link network of over km 4
5 At your service Transmission of analogue radio and television programmes Digital television Network capacity SHARED Digita Presence: Mini Licence, OAD via DVB- T- network, NETWORKS MHP transm ission service In future also: m obile TV (DVB- H ) and HDTV To be launched soon: Wireless broadband with MHz Flash OFDM Network capacity Network and site services GSM, 3G, WLAN Network design, im plem entation and m aintenance all over the country, Network Managem ent Other services: Positioning: Fokus, Paging: Digita DARC 5
6 Profound change is continuing Three strong sources Technology development and convergence Regulatory development removal of industry specific legislation and encouragement for competition Changes in consumer needs and behaviour Possible obstacles What is needed is sound business models and a real competitive edge Surprising changes in consumer behaviour Security, security and security 6
7 Content Distribution Terminal chain will be brok C o n t e n t D i s t r i b u t i o n T e r m i n a l Broadcasting, On- demandcontinuity video (programs) Data Video p- to- p communication and services DVB- T DVB- T, DVB- C, DVB- S, DVB- H Television: lean back Dedicated link Application specific receivers/ set- top box es DVB- S Modem, PSTN, ADSL 2G, 2,5 G DVB- C WLAN UMTS Flash OFDM 2 G, 2,5 G UMTS Flash OFDM PC: Mobilephone DVB- H lean s forward WLAN UMTS DVB- H ADSL DTech Pauli Heikkilä 7
8 Past: IP on everything, Present: IP under everything and Future: IP runs over everything, Venton Cerf Prof. Pauli Kuosm anen 8
9 From value chains towards value networks Content producers Content packagers Retail chain Network operators Service operators Custom er groups Custom ers System suppliers Shared Network operator Network contractors Infrastructure providers Concent r at e on your cor e com p et en ces Fr om ver t i cal i n t eg r at i on t ow ar d s hor i zont al st r u ct u r es 9
10 True network sharing models bring the largest benefits Masts / sites often overloaded Sam e coverage with shared antennas (Need to ex pand the transm ission network) Significant increase of RF ex posure Capex and opex savings are minim al High level of dependency from com petitors / free- rider risk Difficult to ex pand and to develop License requirements not reached Difficult to achieve equilibrium between operators Geographical sharing Mast / site and Antenna sharing + Econom ically efficient in theory + Operators have individual coverage areas + Sim ple, quick, known + Theoretically no + Savings from infrastructure coordination in roll outs Costs High coordination to open a site No capacity pooling gains No optim ization of RF ex posure Capex and opex savings are not m ax im ized High coordination in roll out Frequency sharing m ay requir regulator agreem ent Lesser ability to make major changes to roll- out policy Common shared Network UTRAN sharing + Highest level of cash flow savings, especially in the first 5 years (launch phase) + Highest level of Capex + Own frequencies = com pliant to regulation in savings + Larger coverage area is m any countries achieved faster + Savings from purchasing + Best sites re- used and m aintaining BS + Efficient use of + Each operator m ay frequencies custom ize its coverage + Optimization of RF + N core networks exposure 10
11 Roles in DTT - Horizontal markets Advertisers Program licence holders Content providers Sells/ rents Network operator - licences (Digita) Network infrastructure (Digita) Network capacity Network capacity Games Shopping centre Infoservices capacity Network capacity Sells networks 11
12 Broadcasting network technical services National Center encoding statist ical m ultiplex ing DVB subtit ling SI editing and insert ion m ult iplex ing and scram bling system m anagem ent Object caroucel IP Encapsulators network adapters m onitoring (ETR290: first priority) Transmitter sites transm itters antennas channel com biners network adapters reserve generat ors sim ulcast analog services m onitoring Regional sites local encoding rem ultiplex ing/ local insertion (part ially im plem ented) SFN synchronization network adapters m onitoring Co nte nt SI SI SAS MUX SDH NETWORK REMUX SAS 12
13 Mobile TV - Roles in the pilot business set- up BROADCASTING PLATFORM NETWORK & SERVICE OPERATOR SOLUTION/ TERMINAL PROVIDER CONSUMER INTERACTIVITY BILLING, IDENTIFICATION CONTENT SERVICE PROVIDER 13
14 Finnish Mobile TV platform in a nutshell Pay- TV rights TV content, metadata Nokia IPDC E- Commerce System Nokia IPDC Service Solution Streams, service guide Pay- TV rights Nokia IPDC E- Commerce System Pay- TV rights 14
15 Digita s principles as a shared network operator Digita is strictly a shared network operator Digit a operat es t he radio access net work and parts of t he core Operations st rict ly in t he b- t o- b (or operat or t o operat or) segm ent No intent ion t o set up a service operator Digita s customers are other network operators / MVNOs / Service operators Will provide t he m ost cost efficient solut ion as there are fewer overlapping invest m ents Network capacit y is offered t o all int erest ed parties on equal t erm s Interconnection between t he 450 network and ex ist ing net works will t ake place through t hese network operat ors / MVNOs The service is focused on rural areas The benefit s of 450 are m ost prom inent in sparsely populat ed areas Densely populat ed areas are bet t er served t hrough UMTS / Wimax / ADSL Service END USERS providers Base stations Edge routers AAA NW mgmt Edge routers Ethernet switches Core routers Internet routers Operator core routers AAA Billing Service Internet Operat or networks providers 15
16 What is Flash- OFDM Broadband and Interactive 3 Mbps downlink peak data rat es Typical 1-1.5Mb per user 900 Kbps uplink peak dat a rates Typical Kbps per user Average packet lat ency 50 m illiseconds PC car d Terminals Desktop modem Always- on Wherever You Are Seam less wide area coverage, vehicular m obilit y IP based m obilit y - int eroperable wit h IP Standard IP No changes t o IP net work, host device, applications or cont ent Leverage IP infrastructure, devices and channels Network Source: 16
17 Technology Positioning WiFi Simplicity but no Mobility WiMAX High Capacity Large Coverage 3G 3G Mobility & Coverage but Complex Network Simplicity Full Mobility QoS WiFi WiMAX Simplicit y and Capacity but no Mobility/ Coverage Flash OFDM Designed as a Cellular Mobile Broadband Data Network Source: Flash OFDM 17
18 A true all- IP mobile network FLASH- OFDM specific components Standard IP components Network Operations Center IP IP RadioRouter 1.25 MHz of paired FDD spectrum RadioRouter IP IP Edge Router AAA Server / WIP IP IP IP Public Internet IP Gateway & IP Firewall Corporate Intranet Home Agent MNS Server 18
19 4 5 0 vs other broadband access in Finland Illustrative coverage Level of mobility Mobile e (mobile Wimax) FlashWimax HSDPA (3,5 GHz) Nomadic (UMTS- TDD) EDGE OFDM UMTS GPRS HSCSD ADSL Fixed ADSL M Cable modem 8M ISDN 1M 14,4k 256k Not broadband Downlink connection speeds & applicat ions 19
20 4 5 0 MHz vs. other mobile networks frequencies Theoretical cell coverage on different frequencies (assuming flat earth model) Theoretical Relative cell radius Frequency cell count Cell area , , , , , ,6 Sour ce: ITU & Qual com m 20
21 SWOT of Flash in Finland Strengths Weaknesses True broadband speed with low latency Non- standard status for tim e being Coverage with 450 MHz Modern all IP End- user ex perience & ease of use Lim ited capacity for highly populated areas New technology therefore lim ited ex perience from the world Opportunities Threats Enhancing the broadband access offering with ADSL and 3G Delay if court process prolonged Rem ain an ex otic technology New business opportunities for all kinds operators with shared m odel Qualcom m & Siem ens support Conclusion 450 Flash OFDM com plem enting the other broadband services 21
22 Expansion of broaband clears the way for wireless broadband Penetration% PC Internet Broadband 5/ 05 at 36% Sou r ce: Mi n i st r y of Tr an sp or t an d Com m u n i cat i on s 10/ 05 Providing broadband access at remote areas by wireless Parallels: Fix ed voice - > mobile voice Fix ed broadband - > mobile broadband? 22
23 Need for ubiquitous broadband access is rising Teens want it everywhere they go (nomadic) Business users want it everywhere (nomadic & mobile) Various industries could boost their productivity by real- time data and control Part of many of our daily lives (summer cabins, boats, etc.) how m any of us takes care of their bills & other banking? Em ail as a connection tool? web browsing as the first source for any inform ation 23
24 Examples of use cases for Flash- 5 0 Flash- OFDM Radio Router 1. Primary broadband access in rural areas Broadband data connection 2. Complementary bb- access in e.g. summer houses 3. Portable / mobile use for business or personal use 24
25 Summary Changes in the technology, regulation and consumer behaviour will change the outlook of IT/ Telecom/ Broadcasting industry New roles and viable business models are in need Sharing networks is a trend that will intensify due to the obvious benefits it will bring Flash 5 0 MHz in Finland will be complementing to the existing businesses of fixed and mobile broadband It may well also be the catalyst that will finally open the mobile data business for the operators Digita will provide a cost effective shared network solution with equal opportunities for all operators to offer wireless broadband First experiences of Flash OFDM in practice are promising and we are truly excited to start the roll- out and launch of this service in Finland at the forefront 25
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