Broadband World Should be Flat

1. Broadband World Should be Flat Victor Chiu Vice President, Telecom Labs Chunghwa Telecom Aug. 12, 2006

2. 6 million broadband users e - Government e - Taiwan e-Industry - e - Society e -Opportunity 3 National Development Plans in Taiwan 2002 • 2003 • M-Taiwan • 2004 • U-Taiwan e-Taiwan • e-Taiwan project initiated in 2002 • M-Taiwan plan in 2003 • BB plan in 2004 • 6 million broadband households by 2008. • Plateform for Broadband applications and services. • FTTH and WiFi and Wi-Max

3. Broadband Taiwan Broadband Chunghwa Telecom • Household (2006/02) • 7.3 million • Household PC penetration (2005/05) • 81.4% • Internet bandwidth (2005/12) • 109Gbps • BB plan in 2010 • 6 million broadband Users • CHT Broadband Market • Broadband market share ~ 87% (~4 million) • Fiber coverage over 90% in metro area

4. Access Fee per 100Kbps in CHT Fee Speed 12M 8M CHT ADSL(12M) per 100Kb/s per Month Access Fee US$0.193 2M 1M 512K 2000 2001 2002 2003 2004/2 2004/4 2004/6 2004/8 2005/4 Evolution of Major Access Speed(Down Stream) 512K1M2M8M12Mbps 20M100Mbps

5. CHT offers Triple Play Services on IPTV In March 2004, CHT has launched IPT, a bundled services including Video on Demand (VOD), Pay channel, live TV and other applications are offered. Multimedia service system TV (A/V Stream) STB Internet Broadband IP network PC (Data) ATU- R Telephone exchange Telephone (Voice) DSLAM Voice/data splitter

6. CHT Network Operations System Customers Customer Interfaces Problem Management Network and Quality Management Service Provisioning Integrated CHT-OSS Billing Cabinet Splitter Server ATU-R ATM/GE SW RDSLAM Router DSLAM BBRAS Integrated NGOSS-based CHT OSS is for multi-vendor and various NEs • Access : ADSL, FTTB • Core : ATM, L2/L3 switches • Transport Network : SDH, DWDM and OADM • Internet : Broadband RAS, GSR, Servers • IPTV : HPER, True VOD/Live TV/KOD Servers

7. CHT Broadband Network Evolution 1G FTTH WiMAX / B3G Network Migration Path Ethernet-based FTTB & P2P Media Converter FTTB+xDSL High Quality Internet Surfing Differentiated Service Triple Play Service 10M Network Quality Index 2010 2005 2006 2007 2008 2009

8. Exercise 5 Years Out: NGN Architecture Communication Network Interactive End to end Functions Control signaling transmission network VoIP Functions VPN Functions CDN Functions Nomadic Functions Operation and maintenance network Service-specific functions Open Interfaces Sharing functions Service/network control platform IMS OSS Core node Core node Packet Switching End-to-end QoS Core transmission network Edge node Edge node Broadband Transport Access network User network Reference : APT NGN Workshop 2004 NTT RENA Architecture

9. VAS (C-I-T-E) IMS VAS and the Mesh Ecosystem • Traditional telecom service value chain • Carrier-CPE-User • VAS/IMS era demands a brand new Mesh Ecosystem User-based Cyberspace: (Home + Work + Leisure ) + Mobile User Terminal Personal Portal Service Provision Content Provision IMS-based Infrastructure (Fixed Mobile Convergence)

10. Lessons learned in BB Services • Schools lead the way, and consumers follow • Affordable Tariff, lower and lower day by day • Rapid Provisioning, Excellent Customer Care • Excellent network Integration & Operations • Lower Equipment Costs • National Policy • Evolution Plan • From DSL, FTTB to FTTH • Triple Play Services • Amazon principle

11. Flat world is a healthy ecosystem • The telecom business world is flat, if the platform is open, or more precisely, if it’s a standard. • In this flat world, the stakeholders, including customers, equipment vendors, content providers, telecom service providers could easily plug and play. • With this in mind, a healthy ecosystem for telecom business might be formed and make all players in a win-win-and-win situation.

12. IP Changes the Telecom World • IP brings the Internet, the Internet world is converging with the telecom world. • The Internet brings not only VoIP, but also IPTV and triple play. Telecom business is on the way to retire PSTN and head on to the broadband business based on IP.

13. IMS is an open standard based on IP and SIP • IMS (IP Multimedia Subsystem) is a standard and gaining increased momentum and will have a fundamental impact on telecom business. • IMS is an open and standardized architecture based on IP and SIP (Session Initiate Protocol) for telecom business including fixed, wireless and cable services.

14. The new competitive battlefield is in VAS (Value Added Services) • The competitive battlefield is taking place in VAS (Value Added Services) and new applications for the end user of these services. • Rich media content is here. • The business and the technical issues - what to do and how to do it - are united. • At the end, it is about a future world of broadband access anywhere to any content from any device and anywhere.

15. Exercise 5 Years Out Through this flat ecosystem, everyone could run his own business, and the business is opened up to everyone else. The ecosystem makes world flat eventually. Exercise 5 Years Out -Mobile phone in your hand -Electronics in your living room -Your company -Your home -China and India, and also the USA

16. Thanks for your attention!