Convergence, next generation networks and the consumer

After convergence, the next significant development in the networking environment will be the acceleration of data services and traffic, which will continue to overtake voice as the most commonly transmitted traffic. The legalisation and availability of more alternatives for data transport within the South African environment will deliver faster connections and drive more affordable connectivity than previously available.

Convergence has its beginnings in a drive by the World Trade Organisation, which has seen the volumes of voice traffic transmitted over networks being overtaken by data. However, until recently, voice revenue has remained the cash cow of the world`s major telecommunication operators.

Convergence is simply the melding of the networks that carry voice, data and TV. It is a phenomenon that has already occurred in Britain, Germany, the USA, France, Malaysia and Australia. Interestingly enough, in these countries, convergence was preceded by liberalisation of the regulatory environments. The opposite has occurred in SA, where the technological advances of convergence have overtaken reforms of regulations.

While a very broad term, convergence must be considered locally in the context of the South African Convergence Bill (which will hopefully be passed as an Act in the near future). The first draft of the South African Convergence Bill was based on the Malaysian model, but was modified to such an extent that it does not reflect much of the original.

Before the Convergence Bill can become a reality, definitions of which organisations actually require an individual operating licence need to be clarified.

Andy Brauer, chief technology executive, Business Connexion`s Networks Competency

Before the Convergence Bill can become a reality, definitions of which organisations actually require an individual operating licence need to be clarified: is it Telkom, the SNO and the SABC, is it Sentech; or are Cell C, MTN and Vodacom included in this grouping?

Some interpretations have even indicated that current Value Added Network Operators (VANS) could possibly also require individual licences.

Voice over IP (VOIP), the enabler for carrying voice on a converged network, was legalised in February this year, but South African companies have been using it for several years. It is the famous "break-in-break-out" clause, which was previously enforced, that is now gone. This led to a flurry of promises in the market, not the least of which was presentations by Telkom on the poor quality of IP telephony. Whether it was wrong or right, Telkom itself now offers this service - even Internet telephony.

The convergence of fixed and wireless networks has become a key topic for forward-looking standardisation, especially in next-generation networks (NGN). This, together with converging telecommunication and information technologies, and the drive to migrate to interoperable and harmonised network architectures, poses some challenges. The most pressing of these is the need to provide global roaming and seamless mobility for the users of the different access technologies employed by different operators.

This is where one of the South African battlegrounds is taking shape. Telkom ADSL prices will come down in August and, for example, will offer SMEs a more cost effect last mile connectivity solution. MyWireless and iBurst, which compete against 3G (and the 802.16e WiMAX standard when it is ratified in 2006), will stir up the market even more. This will push 3G to 4G. Since products based on these technologies compete, it will also push prices down for the consumer.

Telkom always had the voice monopoly. However, cellphone companies have successfully eroded much of this business. This leaves the data business as the likely "next wave" for NGNs when the SNO gets off the ground.

It will not, of course, stop there - but the third network operator, which should have been awarded in 2006, is likely to be delayed.

Encouragingly, a new standard approved by the International Telecommunications Union (ITU) provides internetworking between the two dominant technologies in NGN environments. Ethernet, or Internet protocol-based networks, and MPLS (multiprotocol label switching) are critical components of the evolving broadband architecture. This effectively bodes well for seamless service delivery to consumers.

The ability to offer Ethernet services means that carriers will be able to offer improved flexibility to customers through a much simpler and lower cost interface. It will allow users to specify exactly how much bandwidth they want between the 10Mb/s and 1Gb/s range currently offered. MPLS will add the quality of service (QOS) that service providers demand. Further, the standards reduce operation complexity and improve scalability for carriers.

The bottom line with the flurry of technologies and emerging options in the converged network environment is that the end user will emerge as the ultimate winner - and that, essentially, is the intention of the Convergence Bill.