Understanding Changing Telecommunications. Building a Successful Telecom Business

  • ID: 2172201
  • Book
  • 542 Pages
  • John Wiley and Sons Ltd
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After a decade of unparalleled growth, hundreds of thousands of employees suddenly lost their jobs in the global Telecoms sector during the first years of the new millennium. Such a dramatic downturn was unexpected, so what were the main contributing factors?
  1. The technology constantly changes and technological innovations are constantly turned into attractive services for the end user. The present convergence between technologies is sometimes called a paradigm shift`.

  2. Users (private people and enterprises) have got unparalleled power as a result of de–regulation: how does the industry predict and determine what users want and what they are willing to spend on Telecom services?

  3. The Telecom business has exposed sharply fluctuating expectations and investment levels, which seems to be a key explanation factor.

So how can this book help you to understand changing telecommunications? Written with a top–down approach it appreciates the demands from investors and shareholders regarding return and recognizes that the business plan becomes a key tool. Disregarding temporary investment volatility and ultimately providing a holistic telecom map including techno–economics and user perception, it contains the following key features:

  • Presents an integrated approach to business and technology with the network serving as a tool to implement a service and business plan
  • Stresses the importance and the understanding of the end user and the offered services in order to successfully align expectations and real demand
  • Favors an end–to–end (e2e) technical approach and acknowledges that this is what the user perceives and pays for
  • Features chapter objectives, several reference models, comprehensive glossary and a top–down portal type structure to enhance learning

This volume will be an invaluable tool for all those needing a broad and complete view of the telecommunications industry, ranging from managers and planning staff with operators, service providers, network and terminal vendors, business analysts and investors to engineers and students.

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Preface xi

About the Author xiii

References and Acknowledgements xv

Glossary xxi

1 Introduction 1

1.1 The Book in Brief 1

1.2 A Dynamic Situation 10

1.3 Success Factors for the Growth of Mobile Services 11

1.4 Comment on Terminology 12

2 End–User Needs and Demands 15

2.1 Objectives 15

2.2 The Role of the Unpredictable (?) End User 18

2.3 User Analysis and Segmentation 19

2.4 Basic Needs Model 33

2.5 Mapping of Needs and Services 35

2.6 The Human End User as a Traffic Generator and Receiver 41

2.7 The Future Most Common End User: A Machine 43

2.8 What are the Service Drivers? 45

2.9 User Perception 46

2.10 Summary 47

3 Networks and Technologies 49

3.1 Objectives 49

3.2 What is a Network? 51

3.3 What is a Vertical Network? 54

3.4 The Convergence (or Collision?) 57

3.5 What is a Horizontal Network? 63

3.6 Fundamental Plans 65

3.7 A Techno–Economic View of the Convergence 70

3.8 Adaptation of the Basic Triangle and FPs to the Converged Multi–Service Network 71

3.9 The Connectivity Layer 75

3.10 The Control Layer 78

3.11 The Service Layer 78

3.12 The Distributed Network Dimension 83

3.13 The Processing Dimension 87

3.14 Key Enablers 89

3.15 General Enabler Development 93

3.16 Enabler Overview 93

4 Telecom Business 99

4.1 Objectives 99

4.2 The Telemanagement Forum 101

4.3 Adopting a Telecom Business Perspective 105

4.4 Telecom Enterprise Strategy: Roles for Positioning 108

4.5 Tools for Profitability Calculations and Business Cases 122

4.6 Revenue 130

4.7 Cost Efficiency 135

5 Services 147

5.1 Introduction 147

5.2 The Service Plan 154

5.3 A Common Segmentation of Services for Mobile Internet 157

5.4 Service Segmentation for Planning 159

5.5 Value–added Services 165

5.6 Economy of Service by Means of Caching 166

5.7 Economy of Service by Means of Saving Bandwidth 166

5.8 Bandwidth Requirements 170

5.9 Security 172

5.10 Future Service Development 172

5.11 Pricing: Charging in the New Telecom World 174

5.12 The Service Plan versus the New Architecture 177

5.13 The Core Network and the Service Plan 177

5.14 The Access Network and the Service Plan 180

5.15 Telecom Management and the Service Plan 183

6 Security 185

6.1 Objectives 185

6.2 The Goals of the User and Actor. Terminology 186

6.3 The Problem 187

6.4 Non–Availability for Non–Security Reasons 194

6.5 Connecting Security Terms into Telecommunication 194

6.6 Main Ways to Implement Security 196

6.7 Integrity and Confidentiality by Access Control Authentication 202

6.8 Integrity by Access Control Authorization in Enterprises 205

6.9 Integrity by Access Control Firewalls 205

6.10 Confidentiality: Encryption and Key Management 207

6.11 Confidentiality by Tunnelling 210

6.12 Confidentiality and Integrity by IPsec 212

6.13 Confidentiality and Integrity for Mail by S/MIME 214

6.14 Applications and Solutions 215

6.15 Summary with IPsec and FP Focus 219

7 Quality of Service 221

7.1 Objective 221

7.2 Introduction 221

7.3 Perception of QoS 224

7.4 Threats to QoS 229

7.5 QoS Enablers 237

7.6 QoS at the Application Level 243

7.7 Implementation of QoS in UMTS 244

8 Service Implementation 247

8.1 Objectives 247

8.2 Chapter Structure 249

8.3 Target Network 250

8.4 Development Tracks 254

8.5 Introduction to Packet Design 256

8.6 The Role of Fundamental Technical Plans in Packet Design 258

8.7 Top–Down Approach to Packet Design 259

8.8 Specific Fundamental Technical Plans 266

8.9 Convergence Between Fundamental Technical Plans 275

8.10 Traffic Cases 280

9 Service Network 285

9.1 Objectives 285

9.2 Connection to Preceding Chapters 285

9.3 What is a Service Network? 286

9.4 Service Network Domain and Principles 288

9.5 Terminology 290

9.6 The Architecture of Service Networks 290

9.7 The Needs of the User Domain 295

9.8 The Needs of the Service Network Owner 296

9.9 Service Network Implementation 299

9.10 The (IP) Service Network Support Entities 300

9.11 Examples of Service Implementation 301

10 Terminals 305

10.1 What is a Terminal? 305

10.2 Business Aspects 308

10.3 History 309

10.4 Terminals for Mobile Networks 309

10.5 PDA Development 311

10.6 Terminal Convergence 312

10.7 The Changing Role of Terminating Devices 312

10.8 What is a Customer Premises Network? 313

10.9 Some Enablers 315

10.10 Terminal Functionality Example 317

10.11 The Future 318

11 Edge Nodes 319

11.1 Introduction 319

11.2 Access and Backbone Networks 321

11.3 MGW Interfaces 323

11.4 Media Gateway Tasks 324

11.5 Summary 329

12 Packet Backbone 331

12.1 Objectives 331

12.2 Service Plan versus Packet Backbone 332

12.3 Capacity Development 334

12.4 Control Functions in the Packet Backbone 336

12.5 The Distributed Dimension 339

12.6 Traffic 339

12.7 ATM Solutions 340

12.8 IP Routing 342

12.9 IP QoS 344

12.10 Multi Protocol Label Switching (MPLS) 347

12.11 Multi–Layer Control 348

13 Access Network 351

13.1 Objectives 351

13.2 Introduction 351

13.3 What is an Access Network? 352

13.4 Access System Fragmentation 357

13.5 Unification 358

13.6 The Distributed Dimension 359

13.7 The Layered Dimension 361

13.8 Fundamental Plans in Access Networks 363

13.9 Mobility 364

13.10 Access Technologies in Mobile Networks 364

13.11 System Evolution 366

13.12 Fixed Systems 374

13.13 Fibre–Based Systems 376

13.14 Ethernet 376

13.15 Combined ADSL over Copper and Ethernet Over Fibre Solution 377

13.16 Cable Modem 378

13.17 WLAN 379

13.18 Satellite Technologies 381

13.19 High Speed Fixed Radio 382

14 Control Network 385

14.1 Introduction 385

14.2 The Environment of the Control Network 387

14.3 Fundamental Plans in the Control Network 388

14.4 A Simple Target Control Network Signalling 390

14.5 Circuit Mode Domain 394

14.6 Packet Mode Domain 397

14.7 IMS Domain = IP Multimedia Subsystem 399

14.8 HLR/HSS for all Previous Domains 402

14.9 The Domain of (Voice and) Signalling Over IP 402

14.10 Common Support Functions 406

15 Interconnection 409

15.1 Objectives 409

15.2 Introduction 410

15.3 Interconnection in Tele–Centric Fixed Voice Networks 413

15.4 Definition of an Actor Interface Reference Point 414

15.5 Service Level Agreements 415

15.6 Service Interworking 416

15.7 QoS Interworking 417

15.8 PDP Context Activation for Connection to a Data Network 418

15.9 Security Interworking 419

15.10 Signalling Interworking 420

15.11 Routing 421

15.12 Mobility Management 423

15.13 Charging and Accounting 424

15.14 Possible Interworking UMTS WLAN 426

16 Telecom Management Operations 429

16.1 Introduction 429

16.2 The Management System 431

16.3 Basic Process Part 438

16.4 The TMN Functional Areas 441

16.5 Service Management 443

16.6 TM Operations from a Roce Perspective 445

16.7 Customer Care and Data Warehousing 448

16.8 Security Management 451

16.9 QoS Management 452

16.10 Terminal Management 453

16.11 Access Network Management 454

16.12 Management of Layered and Serial Interworking 454

16.13 Conclusions 457

Appendix 1 Web Services and a Service–Oriented Architecture 459

Appendix 2 Financial Calculations 463

Appendix 3 Development Tracks 473

Appendix 4 Dimensioning Media Gateways and Associated Telephony Servers 481

Index 499

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Anders Olsson has worked for many years as a network designer in Sweden (Televert, nowadays TeliaSonera), Columbia (Telecom) and Tanzania (TP & TC), and in 1991 was appointed senior expert in Network oriented training at Ericsson.
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