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(C) 2003 NTT Enhancing IP networks to support consecutive killer applications Tadanobu OKADA Vice President, Director NTT Network Service Systems Laboratories.

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Presentation on theme: "(C) 2003 NTT Enhancing IP networks to support consecutive killer applications Tadanobu OKADA Vice President, Director NTT Network Service Systems Laboratories."— Presentation transcript:

1 (C) 2003 NTT Enhancing IP networks to support consecutive killer applications Tadanobu OKADA Vice President, Director NTT Network Service Systems Laboratories

2 (C) 2003 NTT 1 Class 3 (utilization of management resources) Class 1 (regulated) Applied R&D System improvement System improvement Customization Customization Fundamental R&D Common technologies to create new services Common technologies to create new services Basic and core Basic and core technologies to generate new technologies to generate new principles and components principles and components NTT (Holding Company) R&D Class 2 (competitive) NTT Facil- ities NTT-MENTT Com- ware Bldg.mgt. Maintenance and and operation of network network facilities facilities Softwaredevelopmentcomputerservice NTTEastNTTWest Intra-pref.comm.Intra-pref.comm. R&DR&D NTTCommun-icationsNTTDoCoMoNTTData Mobilecomm. SI R&DR&DR&D Intl. & inter-pref.comm. NTT Elec- tronics NTT- NTT- AT AT Opticaldevices,LSI Technologytransfer, software & hardwaredevelopment Class 4 (new business exploration) Organization of NTT Group

3 (C) 2003 NTT 2 Changes in the numbers of subscribers and users Note 1: Numbers of telephone and ISDN subscribers after 2002 are an NTT projection. Note 2: Numbers of mobile phone subscribers are a projection of the Mobile Computing Promotion Consortium (MCPC). Note 3: Numbers of Internet users are a projection of InfoCom Research Inc. Note 4: Numbers of broadband user households are the target of the e-Japan strategy. 20 million 40 million 60 million 80 million 94959697989900010203040506 3/2000 Telephone Mobile phone Broadband (fiber optic + DSL, etc.) Internet (fixed networks + mobile Internet) ISDN 7/1999 – NTT Reorganization IT Strategy Council e-Japan strategy Number of telephone subscribers: 50.61 million (as of end Sept. 2002) Number of mobile phone subscribers: 77.72 million (as of end Sept. 2002)

4 (C) 2003 NTT 3 Internet-user household projections Other Bar graph Number of Internet-user households Broadband use Narrowband use Line graph Broadband user household penetration rate Mobile Internet user penetration rate (Source: InfoCom Research, Inc.) (x1 million) 0 10 20 30 40 45 0% 10% 20% 30% 40% 50% 60% 70% 75% 14.09 11.49 8.99 4.86 2.41 0.22 0.03 6.30 10.68 14.42 15.39 14.94 13.95 2.38 8.43 8.44 7.64 6.10 4.10 2.32 1.45 19.39 22.30 19.33 13.86 8.84 6.41 5.28 23.25 31.15 36.52 39.24 40.87 41.28 41.75 29.8% 45.8% 55.9% 63.7% 69.3% 73.1% 75.7% 8.2% 18.7% 36.0% 52.8% 66.3% 71.8% 74.8% Number of user households Penetration rate 2001200220032004200520062007

5 (C) 2003 NTT 4 Broadband access penetration Broadband environment (high-quality movies, interactive, constant connection) ADSL (2%) CATV Internet (5%) United States (103 million households) 3/2001 ADSL (32%) CATV Internet (18%) Republic of Korea (14 million households) 8/2001 Japan (47 million households) ADSL (9%) CATV Internet (4%) Fiber optic access (59%) 9/2000

6 (C) 2003 NTT 5 Monthly ADSL service fees in Japan, the US, and Korea ADSL services for household users are not provided yet.(2002) Japan 1.5Mbps @nifty, OCN, Plala ; 8Mpps @nifty, OCN, Plala, and Yahoo!BB U.S 1.5Mbps Verizon, SBC, Covad Korea 1.5Mbps KT, Hanaro; 8Mbps KT, Hanaro Note 1: Fees compared: ADSL subscriber fees, ISP fees and NTT line connection charge (applicable in Japan only). Note 2: Dates of calculation: September 1,2003 for fees in Japan;April 1, 2002 for fees in the US; January 2002 for fees in Korea. Note 3: Exchange rates: 120.2 to the U.S dollar; 0.1045 to the Korean won. Source: Predicting the Spread of the Internet, May 21, 2002, InfoCom Research, Inc. $22.95 \2,663 $23.30 \2,703 $56.62 $33.91 3,900won $26.08 2,900won 0 10 20 30 40 50 60 1.5Mbps8Mbps

7 (C) 2003 NTT 6 Changes in the electronic commerce (final consumption goods) market Electronic Commerce (EC) Commercial transactions involving the ordering of goods and services on the network using TCP/IP. Source MPHPT billion $

8 (C) 2003 NTT 7 Changes in the use of contents before and after broadband % Source: An Outlook for the Spread of the Internet, May 21, 2002, InfoCom Research, Inc.

9 (C) 2003 NTT 8 Source: Stefan Saroiu, Krishna P. Gummadi, Richard J. Dunn, Steven D. Gribble, and Henry M. Levy; An analysis of Internet content delivery systems, Proc. of the 5 th Symposium on Operating Systems Design and Implementation, December 2002. Bandwidth usage by several contents delivery systems (actual data)

10 (C) 2003 NTT 9 IP network as an infrastructure IP network should grow into a sound infrastructure on which various business players provide users with killer applications and get money. Simple, Safe, Smart Marketing business Travel EC Database business Financial portal business Movie distribution business Net game business Remote nursing-care business e-learning business Community business Image creator support business Preventive medical care business Online publishing business Collaboration business Solution business IP network

11 (C) 2003 NTT 10 Requirements for IP telecommunication network Variety of QoS Security End-to-end connectivity Scalability Openness Economy IP network should become simple, safe, and smart.

12 (C) 2003 NTT 11 TV Home network Wireless Other networks Session control Edge node Main information Control information Corporate network Outline of network architecture Transport Network control Application servers Optical Regional Mobile IP Security Presence Authent ication Charging Service platform Gateway Core network Network platform

13 (C) 2003 NTT 12 Secure Session TechnologyA Key to mass communication Large between unspecified number of people Medium between specific enterprises Small within an enterprise Client/Server End-To-End Authentication by pre-shared key (password, etc.) e.g. IPsec, HTTP digest authentication PKI, server-mediated authentication e.g. TLS, Kerberos e.g. S/MIME Mass communications with: Mutual user authentication Secure communications Privacy protection Limits to Non-NM approach Target Non-NM approach Breakthrough by combining session-control and secure- communications technologies NM approach - user authentication - address resolution - session control - secure signaling Mass communications between many users will be made possible by secure session technology combining session-control and secure-communications technologies. NM : network-mediated

14 (C) 2003 NTT 13 IP transport Location registration Monitor connection Commu nication Search Check status Connection establishment Transport Network control Application servers Service platform AuthenticationBilling/payment Network control associated with communication lifetime Specific services with application-dependent controls session Authentication Access control Location management Presence control Security control QoS control Encryption control

15 (C) 2003 NTT 14 Examples of business player model Use Customer and terminal service provider Delivery service provider Session management provider Network management service provider Authentication service provider User (terminal) (1) User authentication (2) Provide service menu Network quality management User (terminal) (3) Connection request (4) Connection agreement Provide terminal management (including application code download) (5) Visual communication Service gateway Billing proxy, Service provider Service portal (6) Billing and collecting charge Main Player: Essential player in C2C Value added service player: Players who provide additional services to main players. They provide outsourcing functions to the main player. Notes Video content Control & management signal Main player Value added service player claims Provide terminal management (including application code download) (Source: HSAC) Bi-directional video communication service platform

16 (C) 2003 NTT 15 Centralized administrative type Autonomous distributed type -Difficult to flexibly meet ever-diversifying user needs -Difficult to flexibly meet ever-diversifying user needs -High cost -High cost Quality concerns Progress from advantages Disadvantages cause delay and decline. Disadvantages cause delay and decline. Internet age Present Server-client type Broadband progress age in the next 5-10 years End-to-end type Fromnow Untilnow Resonant communications environment Low-cost Reliability and quality assured Reliability and quality assured Telephone age Network evolution toward resonant communication environment ^ ><

17 (C) 2003 NTT 16 Features of the resonant communication environment anywhere high Quality Quality (bandwidth, delay) Charges(price/distance) Contents Time shift Ubiquity text audio video - Text, audio, video low-cost good Mobile phones Mobile phones Fixed lines Fixed lines Current Internet Current Internet (Narrowband/broadband) (Narrowband/broadband) Resonant communication environment Resonant communication environment Notes Interactiveness (real time) Security high static images good

18 (C) 2003 NTT 17 Impact on the Japanese economy The impact on the Japanese economy is estimated in the range of \64 trillion annually by 2007. (Source: McKinsey & Company, Inc.) Impact of introduction of broadband systems into industries Automotive and electrical machinery ( global competition type ) Other manufacturing industries ( domestic demand type ) Medical etc. ( profession service type ) Retail etc. ( processing & distribution type ) Distribution and financial etc. ( facility operation type ) 64 trillion 3 trillion 17 trillion 11 trillion 17 trillion 15 trillion

19 (C) 2003 NTT 18 Broadband communication era has started. IP network should grow into an infrastructure, that has high reliability, multiple transfer quality classes, and secure end-to-end connectivity. Session control is one of the key technologies to meet the requirements. These technologies provide simple, safe, and smart connection between end-to-end users, which can create a variety of new businesses. Summary

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