Examining Regulatory Environment in the Ethernet world
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The document discusses regulatory approaches for implementing Ethernet-based carrier networks in Indonesia. It examines moving from a vertical to horizontal licensing model to encourage competition. It also discusses the need for a new interconnection system between all-IP networks to address issues like losing revenue from traditional services moving to IP. Regulators are encouraged to take an anticipatory rather than reactive approach, and facilitate infrastructure sharing among providers to spur new services and applications.
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Examining Regulatory Environment in the Ethernet world
- 1. Examining Regulatory Environment in the Ethernet world Arief Hamdani Gunawan Senior Officer – Regulatory Management TELKOM INDONESIA
- 2. The Core Business As of June 30, 2009 :
- 3. Penetration in Telco Industry As of June 30, 2009 :
- 4. AGENDA Regulatory Approach: Anticipative or Reactive License Model: Vertical to Horizontal Interconnection Regime for Implementing Ethernet Based Carrier Regulatory Approach: Anticipative or Reactive
- 5. Regulatory Approach Relies on proactive regulation to prevent undesirable market developments. Preferred where: markets are newly liberalized; markets are at risk of domination by one or more players key regulatory, economic, social or policy objectives cannot be fulfilled by less Uses reactive measures to correct undesirable market developments. Preferred where: markets are already competitive and in little risk of domination by one or more players; markets are in an emergent condition, are not in danger of being dominated by one or more players, but could be distorted by overzealous regulation Ex – Ante and Ex – Post
- 7. Blueprint for Ethernet Acceleration Security Interoperability Interconnection Sustainability Government Program Policy and Regulation Affordability QoS Consumer Government Industries / Operators Incentive Value to Every Consumers
- 8. NGN Solution : Co-developing & Cooperation among carriers VoIP Interconnection Interconnection system in the internet International settlement in the internet Transiting from PSTN to IP Networks Peering & Transit Dominant Generates zero revenue Current Situation Developing a new interconnection system for All-IP networks Short-term Issues New Interconnection System Needed Problem : Losing Main Revenue Sources Long-term Issue Regulator role: Encourage entrepreneurship in regard to development of new application services and also facilitate infrastructure sharing among service providers (co-opetition).
- 9. Telco Industry - Environment Overview Highlights on Telco Industry in Indonesia :
- 12. AGENDA Regulatory Approach: Anticipative or Reactive License Model: Vertical to Horizontal Interconnection Regime for Implementing Ethernet Based Carrier License Model: Vertical to Horizontal
- 13. Initial Deployment Courageous deployment of a new comer caused positive cycle At the initial stage of broadband, full-scale commercial deployment of broadband seemed like a risky road to take Regulatory Regime to be technology-neutral and meet the policy objectives. 4G FTTX Transport Cost? - High equipment cost Demand? - Low demand due to high price QoS? - Varying with distance & quality of copper line Demand up Deployment Cost down Service Price down Technologies Ethernet enabled
- 14. From Vertical to Horizontal Today Single-service NW Servers Clients Backbone Network Access Access Tomorrow Multi-service NW/client-server Communication Control Content Content Media Gateways Media Gateways Access Core Network environments of user-oriented ubiquitous services Establish NGN for Seamless access conditions New interconnection systems needed according to the change Data/IP Networks PLMN PSTN/ISDN CATV Services Access Transport & Switching Networks
- 15. Separation to Integration Expected Future Transition: Packet Service (End-to-End) Past : Separation of Voice & Data Transport Circuit Switch. Access Capa. Circuit Switch. Transp. Capa. Packet Switch. Transp. Capa. Present : Separation of V & D Access xDSL / FTTx Circuit Switch. Access Capa. Circuit Switch. Transp. Capa. Packet Switch. Transp. Capa. Packet Switch. Access Capa. Near Future : Integration of V & D Transport VoIP / VToA Circuit Switch. Access Capa. Circuit Switch. Transp. Capa. Packet Switch. Transp. Capa. Packet Switch. Access Capa. Future : Integration of V & D Access and Transp. Packet Switch. Transp. Capa. Packet Switch. Access Capa.
- 16. Internet Protocol Key Feature of IP : Anything over IP, IP over Everything Most of Services use IP as their connection platform Most of Networks support transport of IP packets IP plays a key role to separate Services with Transport Separation of Services and Transport Transport Services Telephone Services Data Services (WWW, e-mail, etc) Video Services (TV, movie, etc) ACCESS ACCESS CORE API
- 17. License Regime NGN provides a platform separating Services from Transport Political and Regulation environment would be impacted Current Vertical environment would be changed to Horizontal environments Impact on policies and regulation Phone PSTN Internet IP-Net M-Ph Mobile Pol. A Reg. a Current Policy and Regulation Environment (Vertical) Pol. B Reg. b Pol. C Reg. c Resource-based Pol./Reg. Video NGN Voice Internet IP (Future Packet ?) Platform xDSL/Optic based Fixed/Mobile MM Pol.Y Reg.y Pol. X Reg. x New Policy and Regulation Environment (Horizontal) Service-based Pol./Reg.
- 18. NGN Regulation Traditional Network Most layers are managed as a single system Regulation reflects vertical integration NGN – Regulation to be shaped Layered approach May be service-based rather than network- or technology-based Need to identify possible “bottleneck” in each layer first “ Open access” or “walled garden” ? “ Market” or “regulation” ? Caution against pre-mature regulation to dampen investment incentive Services Core Telephony Internet Television Access Access Core Services
- 19. AGENDA Regulatory Approach: Anticipative or Reactive License Model: Vertical to Horizontal Interconnection Regime for Implementing Ethernet Based Carrier Interconnection Regime for Implementing Ethernet Based Carrier
- 20. Elements of Interconnect Provider 1 Provider 2 E-NNI EVC-1 UNI UNI UNI UNI Technical Business Standards (E-NNI, Inter-Provider OAM, common service definitions) Wholesale agreements for service validation, availability, pricing, ordering, billing OSS and BSS implementations for ordering, provisioning, billing and assurance Interconnect enablers/specialized providers
- 21. Ethernet Services over Interconnected Networks Carrier Ethernet services are delivered over interconnected Ethernet networks Interconnected networks may, for example, consist of: a customer’s network connected to a service provider's network that is also connected to other service providers' networks. An end-to-end carrier Ethernet service can span several interconnected packet networks. PB PBB-TE PBB PBB-TE PB
- 22. Each Ethernet network may deploy a different packet transport technology which provides its own mechanisms aimed at ensuring network survivability. Examples are: Bridged Ethernet with MSTP or SPB or G.8032 Traffic Engineered Ethernet with PBB-TE protection switching A protection mechanism is required for the interconnected zone. Ethernet Services over Interconnected Networks PB xSTP 1:1 SPB 1:1 PB xSTP PB PBB-TE PBB PBB-TE PB Interconnected Zone Interconnected Zone Interconnected Zone Interconnected Zone
- 23. Interconnected Networks Protection Mechanism: General Technical Requirements Protect against any single failure or degradation of a facility (link or node) in the interconnected zone Support all standard Ethernet frames: 802.1D, 802.1Q, 802.1ad, 802.1ah Provide 50ms protection switching Provide a clear indication of the protection state Avoid modification of the protocols running inside each of the interconnected networks Ensure that multicast and broadcast frames are delivered only once over the interconnected zone Allow load balancing between the interfaces that connect the networks to ensure efficient utilization of resources
- 24. Technical Consideration: Solution Principles Interconnect zone 4 3 1 2 7 A B D Blue traffic (VLAN X) is only sent through port 1 (which is protected by port 2). Blue traffic is sent through port 2 in the event of failure of link 1-3, or of node B Blue traffic is sent through node C in the event that node A fails. 8 The protection mechanism is available per Ethernet service in the interconnected zone (i.e. per VLAN). An Ethernet service is carried only over one of the interfaces which connects the two adjacent networks. In the event of a fault condition on the link or the peer node, traffic is redirected to the redundant interface. The service may also be protected by another node to avoid a single point of failure. If a node is no longer able to carry traffic, traffic is redirected over the redundant node. 6 5 C
- 25. Encourage entrepreneurship in regard to development of new application services and also facilitate infrastructure sharing among service providers (co-opetition). Move towards Horizontal Licensing/Authorization Regime to simplify the procedures and removing entry barriers. Ensure level-playing field and adequate flexibility to operators with respect to the services sustainability and long term investment/development. “ Hands-off”/ “Light regulation” regime to help tackle the challenges thrown open by the evolving trends in ICT leading to targeted growth in the services and applications. Closing Telecom Deregulation
- 26. Thank You Arief Hamdani Gunawan [email_address]
Editor's Notes
- #19: Telecommunications Regulatory Master Class The Need for Regulation