1. Networked Taiwan
H. T. Kung
July 22, 2003

2. Presentation Plan Defining “Networked Taiwan”
2018/11/18
Presentation Plan
Defining “Networked Taiwan”
Strategies and Opportunities
A National-level Focus: Integrated Beyond 3G (iB3G) or 雙網計畫
Improve the System
Recap

3. “Networked Taiwan” Three levels of meaning:
2018/11/18
“Networked Taiwan”
Three levels of meaning:
Network level (“plumbing” level)
Network connectivity, broadband penetration, # wireless access points, etc.
Service level (“information systems”)
E-government, e-learning, e-healthcare, etc.
Society level (“social networking”)
Perhaps most interesting
We elaborate on the 2nd and 3rd levels in the next two slides

4. “Macro Computing” at Service Level
2018/11/18
“Macro Computing” at Service Level
Service-level networking is “macro computing” for enterprises. It is large-scale integration of people, databases and services through computer and telecom networks, e.g.,
Healthcare systems for the senior population
Entertainment
Distance learning
These applications often have unlimited market demand
This is in contrast to traditional "micro computing" for individuals

5. "Social Capital“ at Society Level
2018/11/18
"Social Capital“ at Society Level
Society-level networking is “social capital”, which refers to those stocks of social trust, norms and networks that people can draw upon to solve common problems“
"Bowling Alone: The Collapse and Revival of American Community" by Robert D. Putnam, New York: Simon & Schuster, 2000
Social capital, beyond just physical capital, is essential in addressing challenges and making difficult decisions

6. 2018/11/18
The Current Status
Taiwan has been successful at the “Network Level”, E.g.,
High ADSL and cellular phone penetration rates
10% of world market in handset manufacturing, and growing
80% of world market in WLAN manufacturing

7. “Service Level” Should Be the Next Focus
2018/11/18
Large-scale applications and services are where computing and communications converge
Computing is part of telecom services
Applications are where telecom’s future lies
We will illustrate a strategy in enhancing the service aspect of “Networked Taiwan”

8. A Principle: “Anticipate and Lead”
2018/11/18
A Principle: “Anticipate and Lead”
Anticipate future discontinuities in science, technology and business models
These discontinuities may be as varied as the end of current semiconductor device feature scaling or the emergence of XML Web services as the underpinning of all future e-commerce
Develop R&D policies on preparing for and leveraging emergent opportunities that these discontinuities represent
Only through an anticipatory R&D program capable of identifying and ultimately leading such seminal changes can Taiwan hope to secure a leading position in emerging areas

9. Some Technical Background
2018/11/18
Some Technical Background
Cellular Phone Network
Mobility and wide-area coverage in voice services
Narrow-band data services
Standards: 1G (analog); 2G (digital); 2.5G/3G (packets)
Wireless Local Area Network (WLAN)
High-speed wireless but in specific locations
Low-cost and grassroots deployment
Standards: b (Wi-Fi) and Bluetooth

10. 2018/11/18
Rapid Growth of WLANs
WLAN users in North America will shoot from 4.2 million in 2003 to 31 million by 2007 (source: Gartner)
Taiwan produced 11 million units in 2002, and 16 million expected in 2003
By 2004, 60 or 70 million world wide installations (source: Intersil)
By 2005, over 80% professional notebook PCs will have WLAN interface (source: Gartner)
By 2007, revenue from WLAN hot-spot users will surpass US$9 billion (source: Gartner)
Note that many ISPs are installing WLANs automatically as part of DSL or cable service package

11. “Parasitic Grid” of WLANs
2018/11/18
“Parasitic Grid” of WLANs
Enterprises and end users make their own investment in WLANs
They have been aggressively installing wired Ethernets for the past dozen years
They have shown similar enthusiasm in installing WLANs
For WLANs, there is no need for carriers to gather millions of subscribers to justify deployment investment; things just happen automatically!
Need to reuse private WLANs (public WLANs have been insignificant and expect to remain so for the next several years)

12. New York City’s “Parasitic Grid”
2018/11/18
New York City’s “Parasitic Grid”
12,647 Wi-Fi access points in New York City, Summer 2002
(WLANs must have been providing good value for users!)

13. Two Possible Responses to the Rapid WLAN Growth
2018/11/18
To play safe: leave WLAN to computer industry
Like PDA, thin-client, etc.
To play big: integrate WLAN with telecom industry
In particular, work on large-volume handsets beyond traditional PDAs
We argue that we should take the second approach

14. WLANs Will Affect Telephone Operators Business
2018/11/18
WLANs Will Affect Telephone Operators Business
Cellular phone subscribers will demand mobile access to WLAN-based services
E.g., make use of WLAN resources in servers, network bandwidth, etc.
Fixed-line phone subscribers will demand Wi-Fi portable access to phone lines or PBS systems as well as access to WLAN-based services

15. Cellular-WLAN Integration: Combining the Best of Both
2018/11/18
Cellular
Coverage for voice and data services
Seamless roaming for wireless data services
Mobility
Billing
WLAN
Deployment in hotspots, homes, work places, etc.
High bandwidth and low cost
Multimedia services

16. A Telecom Strategy for Taiwan
2018/11/18
A Telecom Strategy for Taiwan
We have launched a focused national-level initiative (雙網計畫 or iB3G program) to prepare for and leverage emergent opportunities represented by WLANs
Within two years, attain a world leadership position in a dozen of key technology and service areas
Brand Taiwan as a powerhouse in creation of integrated WLAN and cellular technology and services
Start new business ventures in this area
Leverage existing strengths of Taiwan:
World-class manufacturing capability in WLAN and handset
Highly competitive mobile operators in Taiwan

17. Defining cellular-WLAN Integration
2018/11/18
Defining cellular-WLAN Integration
User perspective
Technology perspective

18. Cellular-WLAN Integration: User Perspective
2018/11/18
Cellular-WLAN Integration: User Perspective
Integration means:
beyond cellular services, a subscriber may also access WLAN-based services when he is in WLAN areas

19. Cellular-WLAN Integration: Technology Perspective
2018/11/18
Cellular-WLAN Integration: Technology Perspective
Integration means both:
handsets, called "integrated handsets“ here, can access WLANs as well as cellular phone networks
and
interoperability of WLANs and cellular networks at some layers of networking

20. Two Integration Approaches
2018/11/18
Two Integration Approaches
Tight coupling
Integration starting at a layer below the IP layer
Seamless voice handoff between cellular and WLAN
Loose coupling  More suitable at this time
Integration starting at the IP layer
Use of the existing phone authentication, authorization and accounting (AAA) systems in WLAN

21. Mobile Operators’ Possible Concerns & Proposed Responses
2018/11/18
Public WLAN hotspots
They sometimes have low usage
Response: Offer billing and roaming services. Focus on subscriber's own private and enterprise WLANs
Voice over IP (VoIP)
Likely, VoIP will only shift business revenues rather than increasing total revenue
Response: Create other revenues, e.g., content
Small handsets
Can handsets with stringent size and battery power constraints make good use of WLAN?
Response: Yes, see the next slide

22. Use of Integrated Handsets for WLAN-based Services
2018/11/18
A wide range of WLAN resources are available to handsets:
Access points, file system, mass storage, smart display, wall mounted display, entertainment center, etc.

23. Use of Integrated Handsets for WLAN-based Services (Cont.)
2018/11/18
Handsets can use resource discovery protocols to find WLAN resources:
Universal Plug and Play (UPnP)
Zeroconf
XML Web services
Handsets can use powerful peripherals to work with these resources:
I/O: Wi-Fi, Bluetooth, etc.
Storage: Memory sticks (512MB), USB drive (2GB), 1.5in HD (5GB), etc.

24. Triangle Routing: An Example Problem Integration Can Solve
2018/11/18
Cellular Connection
USB Drive
Handset
WLAN
ISP
File Server
E.g., download video to home entertainment center

25. Handover to High-bandwidth WLAN Shortcuts
2018/11/18
Cellular Connection
USB Drive
Handset
High-speed WLAN Connection
ISP AP
File Server

26. Handover to High-bandwidth Internet Connection
2018/11/18
Cellular Connection
USB Drive
Handset
High-speed WLAN Connection
File Server AP
High-speed Internet Connection

27. Examples of Integration Efforts
2018/11/18
Examples of Integration Efforts
Avaya/Proxim/Motorola: Wi-Fi/cellular roaming
Nokia: Wi-Fi/GPRS integration
Cometa Networks: JV of AT&T, IBM, Intel to provide wholesale wireless broadband
T-Mobile: Starbucks, etc. hotspot services
Boingo: WLAN hotspots aggregator
Nextel: iDEN and private Wi-Fi for customers
Verizon & Sprint focus on 1XRTT for now
Lots of others: VoIP integration, security, etc.
Source: William Lehr, March 2003

28. Further Integration Examples
2018/11/18
Further Integration Examples
British Telecom has committed to providing public WLAN services with 4,000 hotspots by 2005
Texas Instruments has a 3-in-1 chip integrating cell phone networking, b and Bluetooth technologies
Toshiba will deploy 10,000 public access Wi-Fi hot spots in the US by the end of 2003
Intel is working on public Wi-Fi access in Asia through an agreement with the Singapore government
Cisco has began to deliver Wi-Fi phones

29. 2018/11/18
Business Models

30. Examples of WLAN-enabled New Businesses for Mobile Operators
2018/11/18
Examples of WLAN-enabled New Businesses for Mobile Operators
Billing and roaming services. Support WLAN hotspots and enterprises, possibly organized by aggregators such as Boingo
MMS with integrated WLAN. Provide high- bandwidth WLAN delivery of conferencing and multimedia messages, i.e., “MSN-Messenger-with-WMP using a handset”
Broadband content services. Consider NTT DoCoMo's i-mode as a model.
Because of their higher bandwidth and lower delivery cost, WLANs should actually do better than i-mode in content services

31. 2018/11/18
The Size of Digital Content Market on i-mode
立ち上がったデジタルコンテンツマーケット
Excluding e-commerce and other payment method provided by third parties
Average # of contents per paying subscriber
% of users paying for contents
More than $1 billion i-mode digital content market in 2002! (fiscal year)
JAVA Launch
10 million subs
５０４ Launch
(million Yen)

32. Mobile Operators' Advantages
2018/11/18
Mobile Operators' Advantages
Billing systems can handle new business models
Per-user, rather than per-household, billing
Roaming agreements with other operators
Payment collection enforceable by terminating voice service of non-paying user
SIM card based authentication
Location-based services can complement resource discovery on WLAN, e.g., scoping the broadcast domain
Handsets can support digital rights management (DRM) for content-based services. The DRM function of handsets is like that of cable set-top boxes

33. An Eco-system: All Parties in the Value Chain Must Win
2018/11/18
Mobile operators: subscription fee, air time, roaming fee, authentication fee, content revenue sharing, advertisement, etc. (do not worry about content generation, WLAN deployment and operations, etc.)
Content providers: content income from mobile operators (do not worry about content delivery, billing, DRM, etc.)
WLAN operators and aggregators: service fee from mobile operators or enterprise owners (do not worry about billing, roaming, etc.)
Handset manufacturers: high-value-added handsets for content services

34. “Non-telecom Way of Thinking” Is Essential
2018/11/18
“Non-telecom Way of Thinking” Is Essential
Key Words: Positive Feedback De Facto Standard Content Centric Business Model Consumer Oriented Marketing Digital Content Market Value Chain Eco System Seamless and Continuous Evolution
Source: Takeshi Natsuno of imode, 2003

35. Action Items Cross-industry consortia Handsets
2018/11/18
Action Items
Cross-industry consortia
Handsets
Next-generation service trials
Education programs
Regulatory initiatives

36. Cross-industry Consortia
2018/11/18
Cross-industry Consortia
Type 1: collaboration between operators and content providers
Operator-independent content
Subscriber authentication to support content service
Competitive billing for content service
Type 2: collaboration between operators and handset manufacturers
Handsets supporting common content platforms and I/O interfaces
DRM support

37. Handsets Multi-mode cellular/WLAN handsets
2018/11/18
Handsets
Multi-mode cellular/WLAN handsets
Low-power Wi-Fi radio and MAC
Handover to WLAN
Handsets with broadband peripheral interfaces
Wi-FI smart handsets, PBX, portable phones
VPN, audio and video streaming, WLAN resource discovery
DRM handsets
Separate ENUM numbers

38. 2018/11/18
Education Programs
NSC/MOE coordinates site licenses for acquiring cellular-WLAN systems and platforms developed by Taiwan R&D organizations to support teaching and research at universities
Deployment of these systems and platforms at universities and labs

39. 2018/11/18
Service Trials
Broadband content services over WLANs, such as those with DRM support
Integrated messaging services such as MMS over WLAN
Integrated billing and roaming services for WLANs
WLAN aggregators based on common hot spot platforms, realizing simplified Nx1, rather than NxN, business relationships

40. Principle for Regulatory Policies
2018/11/18
Principle for Regulatory Policies
Policies have industrial objectives of enhancing Taiwan’s competitiveness in technology, content and services
That is, policies need to be proactive in advancing manufacturing, content and service capabilities in Taiwan
Study regulatory advances in other countries, such as South Korea. If they can do it, Taiwan should try to do it too

41. Regulatory Initiatives
2018/11/18
Regulatory Initiatives
“Open menu” on subscriber handsets
Enforcement of local loop unbundling
WAN outdoor: extension to class 1 and to class 2
EMI approval of equipment rather than their deployment (shouldn’t we be less paranoid about interference, given the Manhattan Wi-Fi map?)

42. Regulatory Initiatives (Cont.)
2018/11/18
Regulatory Initiatives (Cont.)
Reuse 3G TDD band in WLAN
Increase unlicensed band substantially
Allow liberal interpretation of “ISM”
Encourage transit and lower transit charge for WLAN traffic
Encourage WLAN antenna setting (e.g., access to roof, sharing power, and line-of-sight protection)
Privacy, universal access, etc.

43. Government Initiatives and Programs
2018/11/18
Encourage services and applications using integrated cellular-WLAN systems
eTaiwan, etc.
Public WLANs
Broadband infrastructure deployment projects
Digital TV initiatives
Leverage national R&D programs such as NTPO, SOC and Digital Learning
Close collaboration among 經濟部, 交通部, 財政部 and 教育部

44. 2018/11/18
Recap
We need to anticipate and prepare for “discontinuities”, and develop control points
The phone-WLAN integration is inevitable
Ought to seize this discontinuity to secure a leadership position in telecom. Speedy execution is the issue
Manufacturers, operators and service providers must collaborate. How well we can collaborate will determine our competitiveness
Some changes in mindset and structure are necessary with “open style” thinking emphasized
Pay attention to new opportunity areas: discovery and use of WLAN resources, application-centric network systems, DRM handsets, etc.

45. Government Leadership Is Extremely Important Here
2018/11/18
Nurture cross-industry collaboration
Adopt forward-looking regulatory policies
Ensure highly competitive infrastructures and services. E.g., achieve the following by 2006:
A minimum of X=10 Mbit/s available to Y=80% of households and businesses in the whole of Taiwan at the cost of Z=US $40/months
A minimum of three broadband service operators available to A=80% of these users

46. 2018/11/18
Challenge
Do we have the will and “social capital” to work together and lead?