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We could be on the verge of the most important change in telecommunications since digital exchanges replaced Strowgers. I'm talking about the evolution of fully IP (Internet Protocol) next generation networks (NGNs), most visibly BTis 21CN (21st Century Network) though other operators in the UK may also have their own plans. There is no doubt that these changes will affect all the stages of the communications value chain. But it is vitally important to separate fact from hype. This is especially true in respect of how a particular business will benefit or be challenged by the coming changes.

NGNs will have fully packet switched, as opposed to circuit switched, network infrastructures. The exact details of how NGNs will work together in terms of interconnection and standards is still to be determined as demonstrated by the large-scale BT-industry interface in respect of working out the details for 21CN. The most significant aspect amid the mass of issues though can be said to be the change to the revenue model for telecommunications operators. At its simplest, a fully IP network allows for improved routing and wrapped services which consequently require a different way of charging to that of traditional circuit switched networks.

Under a fully IP network charging on a metered basis for voice will not be feasible; rather voice will be wrapped up in the service package and will effectively be efreei. So how will revenues be maintained if voice is free? This is where the other IP is paramount; the second IP of course being Intellectual Property. When revenues for switched voice disappear, a wrap of IP delivered services will attract customers on the basis of the quality of IP (Intellectual Property) or, in other words, content.

But here one must be careful of the hype and instead develop a subtle understanding of the impact of NGNs from a competition viewpoint. While IP networks mean a fundamental change from a service point of view, the reach to deliver those services will still depend on efficient interconnection with BT's network and a suitably competitive environment to encourage alternative network build. Therefore for businesses with an alternative network that is already data (not voice) centric, NGNs present a wealth of opportunity.

# posted by Medical Information : 4:05 AM