2. Building the information superhighway
2.1 Enabling technologies on the information superhighway
The term “convergence” is becoming a buzzword
along the information superhighway; it combines various
aspects of once seemingly separate undertakings and encompasses
a broad set of technological developments, industry restructuring
and associated regulatory changes. Convergence is not just
about technology, but also about services and doing business,
and technology’s interaction with society. The advent
of computers and the advancement of digital technology worldwide
were the prime movers of this convergence phenomenon sweeping
across the world. It has resulted in an entirely new perspective
on communication and technology, requiring organizational
reorientation around the world, not only cooperatively through
newer alliances and mergers, but also competitively through
intrusion into one another’s markets (Hukill and others,
2000). Broadly, convergence is understood to encompass the
overlapping and ubiquitous use of computer systems, network
infrastructure and other electronic communication systems
for content creation, packaging, storage, archiving, retrieval
and dissemination of digitally encoded information, whether
in communications, broadcasting or in information technology.
Technological convergence, leading to a seamless integration
of all forms of wireline and wireless media on a fully digital
information superhighway network, allows access to an array
of information from anywhere in the world at any time. For
these reasons, any discussions about the information superhighway
will not be complete if they do not address the role of
enabling technologies, including space technology elements,
which essentially drive the convergence and the seamless
integration. An understanding of the nature of these developments
will help the decision makers to appreciate the underlying
issues as they address the altering scenario and the policy
framework thereon.
Some of the key technological trends in the development
of the information superhighway are summarized at a broad
level below.
(a) Increasing the adoption of digital technologies, covering
a wide range of disciplines associated with computer, communication
and information technologies. Digital source encoding forms
the primary basis for the convergence and, once encoded,
the data is in “bits”, and the systems and networks
handling such information are indifferent to the nature
of the source, whether image, sound or text. For example,
the basic building block for digital encoding of moving
images is the family of standards from the Moving Picture
Experts Group (MPEG);
(b) Availability of high-speed networks, both terrestrial
and satellite-based, with high data rate handling capability
and spectral efficiency. Transmission technologies such
as the Integrated Services Digital Network (ISDN), Digital
Subscriber Line (DSL), and Asynchronous Transfer Mode (ATM)
will ensure that both existing and new infrastructure can
play a role in carrying out the new services. The capabilities
are further enhanced by compression techniques implicit
in the MPEG standards (European Commission, 1997);
(c) Internet Protocol (IP) emerging as the de facto network
protocol and becoming platform-independent. The Internet’s
open, non-proprietary approach to standards has ensured
rapid enhancement of the capabilities of the World Wide
Web, owing to the open approach to browser development taken
by many vendors (European Commission, 1997).
Advances in microelectronic devices and technologies are
leading to compact and portable multi-function devices such
as personal digital assistants (PDA) packed with computing
and communication capabilities. With everything becoming
digital, analogue components of existing networks are being
progressively phased out. Optical fibre, with immense bandwidth,
is being increasingly used in wireline networks. The advent
of photonics is yet another development, which, with its
enormous versatility, presents a challenge to the supremacy
of electronics in network circuitry. Advances in digital
multiplexing and transmission technologies make it possible
to package more information into the existing conduits and
move them across the networks with greater speed and efficiency.
With everything digital, any medium can be a conduit for
any type of content, subject only to the bandwidth limitation.
Simultaneous developments in client-server computing make
it possible to customize and provide services on demand
to fit user requirements. Some of the relevant developments
and trends in contemporary technologies related to the information
superhighway are summarized in the sections below.
2.1.1 Wireline systems
Wireline systems refer normally to telephone, cable television,
and data networks, and individually each one of these has
its own technologies and services. With the convergence
to digital content and the transmission through cable and
multimedia service capabilities, these networks have started
resembling each other in terms of technology and functionality.
The Public Switched Telephone Network (PSTN), the most prevalent
of the wireline networks, is undergoing transition to digital,
except probably for the “last mile” connection
and the terminating equipment, which are analogue. With
the growth of Internet connectivity on the rise, the demand
for digital connectivity to subscribers’ premises
has gone up. The ISDN, DSL, cable modem and computer modem
technologies permit digital connectivity over the access
segment of the telephone network. ATM is a packet-switching
technology that provides bandwidth-on-demand and high-speed
multimedia transmission over wide area networks. ATM is
emerging as a standard with its capability to accommodate
all forms of content and the Internet Protocol. Many countries
in the region are deploying ATM over the fibre optic backbone
of their national information infrastructure. There are
also newer technology developments in fibre transmission
such as Wavelength Division Multiplexing (WDM), which yields
tremendous transmission speeds and enhanced capacity. Nonetheless,
although optical systems are being planned around the region,
with China, India and Japan leading the pack, they may not
become commonplace in the near future.
The convergence of PSTN and cable television (CATV) networks
has started, in which the CATV network, emulating the star
configuration of PSTN, has started providing interactive,
broadband, switched services to subscribers’ premises.
Cable telephony services, cable-based Internet access and
interaction services such as pay-per-view (PPV) and video-on-demand
(VOD) have already been offered in some countries.
2.1.2 Wireless systems
Radio communication is advancing on many fronts, providing
complementary and competing solutions for the fixed and
mobile services. Spectrum scarcity is becoming less of an
issue as technological advances allow the use of higher
frequencies besides more efficient use of the existing spectrum.
Recent terrestrial and satellite wireless systems also have
provision for digital interaction capabilities at increasing
bandwidths. Terrestrial systems have limitations imposed
by vagaries of weather, terrain and so on, aside from problems
related to incompatible and non-interoperable standards.
The alternatives offered by the satellite systems, such
as the Fixed Satellite Service (FSS), Direct Broadcast Satellite
(DBS), Direct-to-Home (DTH), Personal Satellite Service
(PSS) and Global Broadband Service (GBS) have the advantages
of fast deployment, cost-effectiveness and flexibility.
2.1.3 Mobile telephony
Mobile telephony has been growing fast in the Asian and
Pacific region with a phenomenal increase in cellular subscribers.
Competing cellular and radio standards have evolved, reflecting
the increasing range of alternatives. The second-generation
systems, which are digital, unlike the first generation,
permit medium-speed data transfer in addition to voice communication.
Typical systems include Digital Advanced Mobile Phone System
(D-AMP), time division multiple access (TDMA), Global System
for Mobile Communications (GSM), and code division multiple
access (CDMA). While digitization, multiple access and the
use of higher frequencies allow these systems to have more
subscribers, the incompatibility between the TDMA and CDMA
systems does not always allow free roaming across networks.
The development of third-generation standards in the year
2000, termed Universal Mobile Telecommunications System
/ International Mobile Telecommunication (UMTS/IMT 2000),
allows more efficient use of the spectrum, packet data /
IP access and higher data transfer rates with multimedia
capabilities. Developed by the International Telecommunication
Union (ITU), the UMTS/IMT 2000 standards are much more widely
accepted than other standards, and many countries in the
region have set a time frame for implementation of these
standards.
2.1.4 Wireless local loop
Wireless local loop (WLL) is yet another promising technology
using radio rather than wireline to connect the users to
the local exchange. It provides a competitive means of expanding
telephone connections to places in the region where the
cost of connecting them otherwise may inhibit the provision
of basic services. WLL can be fixed or mobile and can work
in conjunction with the cellular systems. This low-cost
option of adding additional users has attracted attention
in the region, with countries such as China, India, Indonesia
and the Philippines opting for WLL.
2.1.5 Satellite communication systems
Communication satellites have proved their usefulness
in a variety of applications whether in broadcasting, mobile
communications, Internet applications, or broadband wide
area networking. Figure 2.1 depicts, in a simple form, the
most important features of the satellites with regard to
some of the important applications.

Source: Lutz, E., M. Werner and
A. Jahn, 2000. Satellite Systems for Personal and Broadcast
Communications (Berlin, Springer-Verlag).
Figure 2.1 Satellite communication applications
The usefulness of satellite systems for broadcasting is
unquestionable, since a single satellite at the altitude
of 36,000 km over the equator, known as geostationary orbit
(GEO), can cover almost one third of the globe. With 93
non-military geostationary communications satellites providing
services to the Asian and Pacific region at the beginning
of 2001, carrying a total of 2,155 transponders (APAC, 2002),
and many more in the pipeline, the efficacy of the system
is no longer in question. Meanwhile, digital satellite broadcasting
is making inroads in the form of DTH service and DBS, though
the progress made is a bit slow. There are strong cultural
and moral viewpoints in some of the countries with regard
to the entry of foreign operators and broadcasters. The
advent of the WTO regime will put these national policies
under pressure in the coming days.
The 1990s saw the evolution of satellite telephony as an
alternative to the terrestrial wireless system. Systems
such as Iridium and Globalstar, based on low Earth orbit
(LEO) satellite systems, and the Intermediate Circular Orbit
(ICO) Global Communications system, which is based on medium
Earth orbit (MEO), were deployed by a number of commercial
operators for regional and global roaming services. While
the financial viability of these models has not been proved
successful, resulting in non-availability of services, these
systems did demonstrate a new way of providing an alternative
to the terrestrial system. Like LEOs and MEOs, the geostationary
Earth orbit satellites can provide mobile telephony services.
Aside from the latency, or round-trip-delay, owing to the
time taken by the electromagnetic signal to traverse the
distance between the satellite and the ground station, both
ways, the GEO satellites have the advantages of proven technology,
longer life and lower cost, since only a single satellite
need be deployed, as against a number of satellites called
for in LEO and MEO systems. Currently, there are two mobile
voice services in operation in Asia and the Pacific, both
based on GEO satellites. The Asia Cellular Satellite system
(ACeS) launched its service in the last quarter of 2000
and is operational in Indonesia and the Philippines. The
Middle East-based Thuraya satellite, launched in October
2000, commenced its services in July 2001. Both these systems,
however, have some way to go before they can demonstrate
profitability.
For broadband communications, satellite technology has
made significant inroads in the Asia and Pacific region
by the deployment of a large number of VSATs. VSAT systems,
with their sophistication, rapid deployment and independent
infrastructure, have proved to be more flexible and less
expensive than the traditional wireline infrastructure,
and they can provide voice, facsimile and data support to
hard-to-reach user groups. Since a VSAT network is scalable,
sites can be added or throughput increased, incrementally.
Growth of the network, even while exponential, is easy to
manage, thus saving costs. The number of VSATs in the region
has grown from around 5,000 in 1990 to more than 20,000
in 1994, and it may pass 100,000 in 2000.
Currently, satellites are already providing Internet services
based on the Transport Control Protocol/Internet Protocol
(TCP/IP). There are also developments in regard to broadband
(Ka-band) communication satellites, with WildBlue, SpaceWay
and iPStar planning to enter the market in the next two
to three years, and the coming years will see intense competition
between the terrestrial and satellite system operators to
provide affordable Internet services to the user community.
(See chapter 3 for details.)
2.1.6 Internet services
The Internet and the World Wide Web symbolize the convergence
of media infrastructure and services. Unlike any other medium,
it has empowered the average user to become an originator
of content and services, in addition to being a consumer.
Used primarily in the early days for email, file transfer
and remote login applications, the Internet has graduated
to many innovative applications in areas as diverse as distance
education, telemedicine, e-commerce, banking, and corporate
communication, to name only a few. The browser programs
that help the users access the Internet have sophisticated
features such as audio and video streaming and other multimedia
applications. At present the bandwidth constraints are the
prime limitation which, once resolved, will allow more innovative,
interactive broadband applications. The number of Internet
users in Asia is expected to reach around 150 million in
2003, compared with 76 million in June 2000. Currently it
is estimated to be around 100 million, as shown in table
2.1 below (Baugh, 2001).
Table 2.1 Number of Internet users in
the Asian and Pacific region
| Country or area |
Internet users |
Country or area |
Internet users |
Australia
China
Hong Kong, China
India
Indonesia
Japan
Republic of Korea |
8.42 million
16.90 million
3.46 million
4.50 million
0.40 million
38.64 million
16.40 million |
Malaysia
New Zealand
Pakistan
Philippines
Singapore
Taiwan, Province of China
Viet Nam |
1.50 million
1.49 million
1.20 million
0.50 million
1.85 million
6.40 million
0.30 million |
Box 1. Broadband scenario in
Asia and the Pacific
“Broadband” is the collective term for
a variety of technologies that allow connection to
the Internet and local networks at a very high transfer
rate, which essentially eliminates the so-called “world
wide wait” that Internet surfers encounter in
the dial-up lines. The two main types of broadband
service used in Asia and the Pacific are the digital
subscriber line (DSL) connection and the cable modem.
DSL runs over the existing telephone lines, but requires
special equipment to send the digital signal over
the lines. DSL users can use the line for telephone
use even while they are using it for Internet purposes.
The cable modems often lack the guarantee of speed
that DSL offers. However, cable modem, DSL and wireless
connections to the Internet are much faster than the
dial-up connections.
The demand for broadband technology for many multimedia
applications continues to be on the increase, and
that experience is expected to become richer and deeper
as the technology advances. According to industry
analysts, the broadband connections in Asia totalled
4.5 million in 2000, and it is expected to see a phenomenal
tenfold increase by 2004. Japan, the Republic of Korea
and Hong Kong, China have much better access to broadband
services in terms of infrastructure, broadband regulations
and market competition.
Much of the broadband connections are through cable
and DSL, and a very insignificant part is through
satellites. This situation is likely to change in
the coming days with the advent of new Ka-band satellites
offering services at prices competing with the terrestrial
systems. The need for change is also becoming obvious
as the Internet content becomes more complex and creates
massive bottlenecks across the terrestrial network.
Satellites bypass terrestrial congestion by distributing
content from source to edge location in one hop, and
they offer better quality of service and bandwidth
efficiency, because multiple routers and terrestrial
exchange points are avoided.
|
Broadband connections (at-home Internet users)
| Country or area |
Cable |
Satellite |
ADSL |
Leased line |
Total broadband |
| Republic of Korea |
18.6 |
0.1 |
38.6 |
0 |
57.3 |
| United States of America |
7.6 |
0.5 |
2.8 |
0.2 |
11.1 |
| Hong Kong, China |
6.0 |
0.9 |
1.2 |
0 |
8.13 |
| Singapore |
6.6 |
N/A |
0.5 |
0 |
7.1 |
| Taiwan Province of China |
3.5 |
0.1 |
2.6 |
0 |
6.2 |
| Germany |
2.7 |
0.1 |
2.2 |
0 |
5.0 |
United Kingdom of Great
Britain
and Northern Ireland |
2.3 |
0.3 |
0.5 |
0 |
3.1 |
| China |
0.2 |
N/A |
0.2 |
0 |
0.4 |
| |
|
|
|
|
|
|
All figures in percentages
By June 2000, Japan, China and the Republic of Korea were
the world’s second, third and fourth Internet markets,
respectively, by number of users (Giovanni, 2001). Demand
for broadband services also shows enormous growth in the
region. In August 2000, the Republic of Korea surpassed
the United States as the leading user of broadband in the
world, though it has less than one fifth of the population
of the United States. Taiwan Province of China is expected
to have more than one million broadband customers connected
by the end of 2001 (APAC, 2002).
Yet another significant development in recent times is
the advent of Internet telephony, which permits telephone
connection at the marginal cost of Internet access time.
It has raised issues such as potential loss of revenue to
the telephone companies from long distance and international
services, besides calling into serious question the international
accounting rates regime and bilateral settlement of payments
in telecommunications. Many countries or areas in the region,
such as Cambodia; India; the Lao People’s Democratic
Republic; Malaysia; and Hong Kong, China; have announced
their intention to introduce these services in the near
future.
Box 2. ICT market in Asia and
the Pacific in 2002
The top 10 predictions for the 2002 ICT market in
Asia and the Pacific, released by International Data
Corporation, Singapore, are as follows:
- The information technology (IT) market will grow
by 13.5 per cent in 2002 in constant US$ terms.
- The telecom services market will grow by 20.6
per cent in 2002 to US$ 161 billion, more than twice
the size of the IT market. This market is likely
to grow at a compound annual rate of 19 per cent
in 2001-2005, reaching US$ 269 billion in 2005.
- The Chinese IT market is expected to grow by
25 per cent to US$ 25.6 billion in 2002.
- Spending in the public sector, telecom industry,
and life sciences segments will spur the IT spending.
- E-business will flourish, with 20 per cent of
the operational budgets in the region spent on Internet-based
initiatives, whether in the creation of enterprise
portals, enhancing Internet presence or Internet-integration
of key applications.
- Infrastructure for the “wireless web”
will improve significantly. The lack of Global Packet
Radio Service (GPRS) devices is being corrected.
While Short Message Service (SMS) and 2.5 G services
are expected to coexist in 2002, greater acceptance
of 2.5 G services is indicated.
- Internet services attract excessive market attention.
The “any time, anywhere” dynamic vision
of “on the fly” application access is
over a horizon that is visible, but still quite
distant. Major technical, legal and behavioural
issues need to be resolved before this vision turns
into reality.
- The greater acceptance and appreciation of the
storage resource as the repository for enterprise
knowledge is a key driver for the adoption of network
storage architectures. Market uptake of network
storage in the region will reach a new phase in
2002.
- Internet security and business continuity concerns
fundamentally alter the market.
- Aroundswell of support from consumers and merchants
for digital identity services is foreseen, mainly
from the convenience of what will be seen as “single
sign-on” to the Internet.
|
Key thresholds that will be crossed in 2002
| Item |
Worldwide |
Asia and the Pacific
(excluding Japan) |
| IT spending |
> $ 1 trillion |
> $ 70 billion |
| Internet commerce |
> $ 1 trillion |
> $ 70 billion |
| Telecom services revenue |
> $ 1 trillion |
> $ 160 billion |
| Cell phones installed |
> 1 billion |
> 370 million |
| PCs installed |
> 500 million |
> 80 million |
| Internet users |
> 500 million |
> 10 million |
| Mobile Internet users |
> 150 million |
> 20 million |
| |
|
|
|
Source: International Data Corporation, December 2001.
|