Why your fate rests at the edge: the convergence value chain is largely about exploiting the multiservice edge

America's Network, August 1, 2004 by Arjang Zadeh

The telecommunications industry is currently facing an "Everything over IP" (EoIP) paradigm that could mean big changes for the industry's fundamental players. EoIP comprises the different network-based services to be delivered over IP, the access technology or edge part of the network.

These services can be as simple as delivering access to the Internet or as complex as multi-player real time games. Assuming broadband connectivity becomes a nearly ubiquitous service, the fundamental promise EoIP presents is that no matter the device or location, users will be able to receive all desired services over the broadband connection.

Under this scenario, content and application providers could gain a significant advantage in the content delivery value chain, while network service providers could evolve into a commodity business.

All services intended for IP need to be delivered over different access technologies such as Cable (DOCSIS), DSL, Metro Ethernet, FTTP, Wi-Fi, 3G networks and so on. Delivering everything over IP significantly simplifies the development paradigm for applications that have to integrate different types of content and for manufacturers of consumer devices.

PHYSICALLY SPLIT

The only fly in the ointment is that various types of content and applications have many different physical characteristics and hence, very different requirements from the network they rely on. Though these requirements can be hard-wired on the backbone network in a reasonably manageable way, they are far more difficult to implement in over- the-edge networks.

The difficulty arises because of differences in network quality of service each type of content may require.

The problem is much bigger on the edge, as there may be more than one service the end-user simultaneously consumes, each requiring a different level of quality from the IP network traffic to the end-user device and vice-versa. Thus each IP connection to each end-user, based on the type of application and content each is running, must be individually controlled.

Such flexibility is not currently designed into most edge network hubs. Most edge network switches are designed for a data service built on basic web access characteristics and cannot be easily modified or adapted to support multiple services of differing qualities.

However, in cable and advanced Metro Ethernet systems, some of these capabilities exist or are appearing in the edge network hubs. But it will take some time before this capability becomes available in more diverse and popular access network switches such as Wi-Fi or DSL.

DYNAMIC TOOLS

Even if the edge network hub were capable of this flexible quality of service management (e.g. DOCSIS 1.1 in cable), the operational support systems need to further evolve to cope with dynamic control and management of quality of service over the access network.

This complex challenge provides significant opportunities for the service providers, vendors of edge technologies, application developers and ultimately end-users. Specifically, service providers have a legitimate opportunity to differentiate themselves by building networks capable of offering high quality, yet cost effective, functionality to end-user applications. This will help service providers resist becoming an undifferentiated commodity broadband IP providers.

If service providers miss this opportunity, they risk not only their margins, but the very role they play in the broadband multi-service value chain.

Arjang Zadeh is a partner in the communications and high technology group of Accenture.