Next Generation Networks (NGNs)
J. Scott Marcus, Director, Project Leader Dieter Elixmann, Department Manager
Next Generation Networks (NGNs)
• Throughout Europe (and the world), public networks are evolving into
Next Generation Networks (NGN) based on the Internet Protocol (IP).
• Different approaches to financing, business models, the role of government, and the
regulatory approach are visible in different Member States.
The shift to NGN
• Historically, many networks delivered a single service.
• With NGN, any network can deliver (nearly) any service.
Transition Voice
Copper
Video
Coax
TV/
Radio
Spectrum
Telco Cable Broadcast
FTTx HFC Spectrum
Telco Cable 3G/4G
Video Audio Voice
NGN Legacy Network
Data
Video Audio Voice
Data
Video Audio Voice
Data
NGN Core, NGN Access
• NGN Core: Replace traditional circuit
switches with IP routers and VoIP gear in order to reduce operating cost and to offer new services.
• NGN Access: Drive fibre deeper into the network in order to offer higher speed,
greater reliability and lower operating cost.
A range of challenges
• Changes in the character of competition
• Changes in last mile remedies
• Challenges in deploying fibre-based NGA
• Migration of interconnection to an IP basis
• QoS and network neutrality
• Challenges during the migration period
• Standardisation and interoperability
• Spectrum management
• Functional separation
Changes in the nature of competition
• Much of regulation and public policy of
electronic communications deals with market power (SMP).
• The shift to NGN implies changes in the value chain, and thus subtly alters market power.
• Implications for regulation?
- New forms of competition emerge?
- Old barriers remain?
- New barriers emerge?
Changes in last mile remedies
• New challenges with access to trenches, manholes, ducts, building wiring, and other infrastructure.
• FTTN/VDSL: the DSLAM moves to the street cabinet.
• FTTB/FTTH: a range of access possibilities.
Wholesale broadband access
Data sources: Commission,
13th/14th Implementation Reports
1,405,065
5,444,389 6,015,176
3,816,854 6,174,809
11,602,716 11,600,249
9,402,385
5,841,788 2,919,862
1,994,025 924,410
5,153,440
5,287,864
6,796,849
527,296
5,033,451
6,734,315
2,219,694
7,490,668
51,706 528,106
16,753,997
10,864,404
23,186,785
1,221,826 2,119,655
3,347,576
- 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000
2003 Jan 2004 Jan 2005 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan
Resale Bitstream access Shared access lines Fully unbundled lines
TOTAL: 46,876,687
TOTAL: 2,725,238
TOTAL: 6,046,851
TOTAL: 13,640,572
TOTAL: 21,121,315
TOTAL: 32,942,493
TOTAL: 41,106,204
Achieving fibre-based NGN Access
• No Member State is likely to achieve full coverage without public stimulus/subsidy.
• Only limited prospects of replicating infrastructure.
Cost per home accessed [in €]
Network Type
DE FR SE PT ES IT
VDSL 457 n.v. 352 218 254 433
PON 2,039 1,580 1,238 1,411 1,771 1,110
P2P 2,111 2,025 1,333 1,548 1,882 1,160
Source: WIK report on Next Generation Access for ECTA (2008)
Functional separation
• Seeks to make non-discrimination more readily enforceable.
• An intrusive remedy that should not be imposed lightly.
• Is not specifically an NGN issue, but could be useful to deal with last mile NGA problems.
European NGN policy initiatives
• The Review package (including separation)
• Commission draft Recommendation on NGA
• Commission’s Guidelines for State Aid
• Commission’s Recommendation on fixed and mobile call termination
Recommendations
1. Pending Review package.
2. More use of sub-national markets/remedies.
3. Refine and complete the NGA Recommendation.
4. Better understanding of costs/benefits of NGA.
5. Impact assessment of ways to promote NGA.
6. Political discussion of NGA goals, and means of achieving them.
7. Consider move to Bill and Keep interconnection.
8. Monitor move to IP-based voice interconnection.
9. Continue to look to free high quality spectrum.
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