Mobile Internet and its Impact

International Telecommunication Union







Mobile Internet and its

Impact on Interconnection

Fixed-Mobile Interconnection Workshop

Geneva, 20-22 September 2000



Robert Shaw & Tim Kelly

International Telecommunication Union









I‚‡r)ÃUurƒvv‚†Ãr‘ƒ…r††rqÃvÃ‡uv†Ãƒ…r†r‡h‡v‚Ãh…rÇu‚†rÂsÇurÃhˆ‡u‚…†ÃhqÃq‚Á‚‡Ãrpr††h…vy’Ã…rsyrp‡Ã‡urÃ



‰vr†Ã‚sÇurÃDUV…Ãv‡†ÃHr€ir…†ÃUurÃhˆ‡u‚…†ÃphÃirÃp‚‡hp‡rqÃh‡ …‚ir…‡†uh5v‡ˆv‡ hqÇv€xryy’5v‡ˆv‡









International Telecommunication Union



Some Technology Trends

• Internet Protocol (“IP”) technologies as

strategic element in design, development

and use of telecoms networks

• Unification and interoperability of IP-based

and PSTN network services/applications

• Gateway devices that can exchange voice,

video, facsimile and data traffic between

PSTN and IP networks emerging…

• Move towards “holy grail” of voice and data

integration









1

International Telecommunication Union



More Trends

• Popularity of wireless networks and mobile

data services

• We will see “Post-PC” second wave of

Internet growth in personal “communicator

appliances”

• Jeff Hawkins: inventor of the Palm Pilot:

– “The future of Internet access is mobile Internet

access”

• 2.5 & 3G (IMT-2000) networks will enable

this revolution…









International Telecommunication Union



ITU’s IMT-2000

• Features of IMT-2000 Capability Set 1

include:

– Support of packet data services (e.g., IP)

– Data rates 384 Kbps to 2 Mbit/s

– Quality of service negotiation

– Asymmetric or symmetric

upstream/downstream bit rates

• Global roaming capability

• First deployed in Japan in early 2001 then

Europe then Americas









2

International Telecommunication Union



Communicator of Tomorrow…

• Tell it where you are

and you can find what

you’re looking for…

• With operator’s or

GPS location service,

you don’t even need to

tell it where you are…

Uuhx҂ˆÃs‚…Ã



• We will constantly ’‚ˆ…Ã…r‰vrÄ







“synch” with data

about our environment









International Telecommunication Union



Which are Science Fiction?









3

International Telecommunication Union



Progenitor: i-mode Services





It’s

not

WAP









International Telecommunication Union



NTT DoCoMo’s i-mode Success

September 1, 2000: over 11 million i-mode

subscribers in 18 months of service





i-mode Monthly Growth (thousands of units)









T‚ˆ…pr)à http://www.nttdocomo.com/num.htm









4

International Telecommunication Union



Traffic Jams

• Internet is currently a “best-effort” network

• “Holy grail” requires “quality of service”

applications (e.g., PSTN-like voice, video)

mixed with “best-effort” ones (e.g., email,

WWW)

• Differentiated services require:

– guanteed quality of service levels and

differentiated bandwidth usage

– new pricing & accounting models to account for

different “traffic value flows”

– new models of “interconnection” & “roaming”

agreements…









International Telecommunication Union



Wireless Services and Applications

9h‡hÃSh‡r



Cvtu

Sr€‚‡r 9vtv‡hy 9vtv‡hy

Wvqr‚ Wvqr‚ H‚ivyr

DHU! "B Hrqvphy 8h‡hy‚t 6ˆqv‚Wvqr‚

8‚sr…rpr PÃ9r€hq UW

9vht‚†v† Tu‚ƒƒvt 9ryv‰r…’







@9B@ H‚ivyr 6q‰hprq

Wvqr‚ Wvqr‚ Sr€‚‡r

Wvqr‚ 8h…

Qu‚r Hhvy @qˆph‡v‚

Qyh’r… Ih‰vth‡v‚







9vtv‡hy

BQST !$B H‚ivyr

Xri Fh…h‚xr 6ˆqv‚

Shqv‚

9ryv‰r…’





DH‚qr

9vtv‡hy H‚ivyr

H‚ivyr W‚vpr

Ir†ƒhƒr… 6ˆqv‚

7hxvt Hhvy

X6Q

Qˆiyv†uvt Qyh’r…







9vtv‡hy

8ˆ……r‡ Ur‘‡

Uryrƒu‚r @€hvy

9vtv‡hy !B

9ryv‰r…’

Ir‡‚…x†









THT









G‚

,QWHUDFWLYH 3RLQWWRSRLQW 2QHZD\ 0XOWLSRLQW



Source: adopted from NTT Docomo W-CDMA Prospectus









5

International Telecommunication Union

Relative price differences:

20 hours per month, mobile & Internet

$584.18





$442.75 Internet use

Mobile use



$281.35







$87.29

$23.72 $23.48 $15.79 $8.88



France Germany Malaysia Mexico

I‚‡r)à DTQÃpuh…trÃvpyˆqr†Ã‚ssƒrhxÃphyyÃpuh…trÃyˆ†ÃDTQÃpuh…trÃ



H‚ivyrÃvpyˆqr†Ã†ˆi†p…vƒ‡v‚Ãƒyˆ†ÃƒrhxÃhqÂssƒrhxÃphyyÃpuh…tr†



T‚ˆ…pr)Ãà DUVÃX‚…yqÃUryrp‚€ÃDqvph‡‚…†Ã9h‡hih†r









International Telecommunication Union



Mobile Internet dilemmas

• In the Internet world:

– Access is generally unmetered, flat-rate

– E-mail is perceived to be a “free” application

– Content providers gain revenue principally through

advertising or subscription

• In the mobile world:

– Access is generally metered, per-minute

– Voice mail and messaging are charged by air-time

– Content providers share airtime revenues

• In a mobile Internet world:

– Which business model takes precedence?

– Who does the billing?

– How are interconnect revenues split?









6