CONVERGING MULTIPLE SERVICE OFFERINGS:

In any discussion of next-generation communications, convergence is guaranteed to be listed as a primary driver. There are technological reasons we will see convergence from the present time until the next generation but, more importantly, there are also strong business purposes.

Few major carriers today operate a single kind of network or offer only one kind of communications service. Many larger service providers offer wireline, wireless and Internet access in multiple locations and countries. They use a variety of transmission technologies, standards and vendors, some of which they may have inherited during a merger or an acquisition.

To operate economically, these carriers must converge their operations to one easily manageable network. To compete in an increasingly crowded field, they must make applications and services available seamlessly across their entire collection of networks. Furthermore, customers should notice the continuity of the service they receive and nothing else.

Third-generation wireless technologies will help wireless carriers provide data capabilities and IP interfaces. The process, though, is one of evolution: Carriers will continue to leverage their legacy equipment even as they incorporate new technologies.

Convergence: A Business Decision

The multi-service network, which handles voice, video and data, is a hallmark of next-generation communications. Though usually discussed from a wireline perspective, access to that network can be through the wireless, wireline or data network.

Wireless is increasingly the access method of choice because of its convenience and flexibility, giving wireless carriers an advantage in the next-generation world. Although wireline may still play a major role for backbone transmission, access will most likely be wireless, whether mobile with global roaming or within a home or an office with Bluetooth. Customers are most likely to use wireless as their primary interface with the communications network.

Wireless carriers will nonetheless face a transition as communications converge. It will not be enough to have wireless access to communications services. An increasingly mobile customer base demands seamless services wherever they go, no matter how they reach the network. Most customers won t be bothered with learning different ways to use the same service for wireless, wireline and Internet applications. Customers also have an increasingly voracious demand for applications or services requiring a large amount of bandwidth that today s wireless networks must address. All of these changes in the market will require new technology.

IP is the backbone that will tie the next-generation network together. Just as the wireline world is changing from circuit switching to packet switching, the wireless world is making a similar move. IP technology will allow the connection of disparate networks with a common backbone capable of handling multiple services. Rather than being tied to a specific switch for most of their services, customers can reach the network from any location and use the same features and services they have come to know and like.

Services as a Competitive Advantage

Services will be the crux of competition in the next-generation network. Voice service has become a commodity, with very little difference in pricing or service among carriers. Accordingly, carriers must differentiate themselves by providing value-added communications services. Service creation and subsequent deployment, however, are more complex when one carrier has multiple wireless networks, a wireline network and a data network. Further complicating matters is the fact that, despite customers  insistence on services that work the same way regardless of network access, each network currently requires its own service creation and network management tools.

The solution is a common service platform based on industry standards. Using intelligent networking concepts, this platform allows carriers to create new services once, then deploy them across the entire network through the common platform. By using modern languages such as Java in the platform, carriers then have the option of using off-the-shelf applications to create new services in a few days rather than vendor-developed services, which can take months. IP also provides a service creation environment to allow for network-based services.

With network-based services instead of terminal or switch-based services, customers can get to their own information no matter how they reach the network. For example, as now seen in some Web-based e-mail services, they can use a single address book or speed dial list from any location or terminal.

With next-generation networks, wireless customers will be able to use their web-access appliances anywhere. The 3G wireless network will provide "always on" access to high-speed data services.

We re not there yet, but the pieces are beginning to fall into place. Multi-mode, multi-band wireless phones are now available to support global roaming. Consequently, carriers have to create international roaming agreements to support their customers. Mergers and acquisitions among major carriers also will help make global access easier. Intelligent common service platforms based on industry standards also are available. Carriers today can create services and deploy them system-wide regardless of access technology.

The next phase of evolution is the addition of improved data capabilities to wireless networks. Circuit-switched CDPD (cellular digital packet data) is currently available and well suited to most end users  current needs, but it is hampered by perceptions of slow speeds. GPRS, which offers tenfold higher-speed data, is on the horizon. Market trials are scheduled this year in Europe and next year in the United States. Even faster solutions approaching a fifty-fold increase will be available within the next three years. Reliable, high-speed data access is crucial for wireless to play a primary role in the next-generation network.

The Third-Generation network will also change how carriers bill their customers. Today s circuit-switched networks bill based on location. They judge which numbers are local and which are long-distance, and they charge by service area of the dialing number and the number called, combined with the length of the call.

The location-independent nature of packet-switched service makes calculating long distance charges more complicated. Always-on access means the model of charging based on time of usage no longer applies. One-rate plans or unlimited access for a flat fee can overwhelm a network, so some sort of usage-based pricing may be required. Possible charging bases include quality of service -- charging more for higher-speed, higher-reliability service -- and amount of data sent over the network. Carriers not only will have to adjust their business practices, but they will have to educate customers so they will accept new ways of paying for service.

People Get Ready

Carriers should be preparing now for next-generation networks by behaving as though convergence was already a reality. Those that provide multiple services should provide a similar look and feel across wireless, wireline and data services. Customers should have similar experiences with sales, billing and customer service no matter which kinds of services they use.

Carriers also can implement and make available existing technology to begin convergence. By making multi-mode phones available to customers who need global roaming and by developing international roaming agreements, carriers can help build a subscriber base for 3G s global roaming capabilities. When developing new services, carriers need to keep convergence in mind and find ways to implement those services so they can be used in a variety of networks.

True 3G will reach its full promise of capability within a couple of years and, by planning now, carriers will be prepared to face a new reality of telecommunications though evolution rather than a revolution. Those caught unprepared may be left behind in the move to the future.

About the author: Keith Shank is director of strategic marketing and business development for the Network Operators Group of Ericsson Inc. He develops strategies for Ericsson's wireless and wireline activities and for using strategic alliances and external technology provisioning to enhance the company's business solutions. Shank joined Ericsson in 1987 and has served in a number of management positions, most recently as director of TDMA/AMPS product management. Before joining Ericsson, Shank spent 11 years as a senior engineer for Compucon Inc.