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New communications technologies : applications for development

Simatupang, Iwan Simatupang, I. (1994). New communications technologies : applications for development. In AMIC Conference on Communication, Convergence and Development: Bangkok, Jun 23-25, 1994. Singapore: Asian Media Information and Communication Centre.

Date

1994

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http://hdl.handle.net/10220/1432

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ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library

New Communications Technologies: Applications For Development By Iwan Simatupang

Paper No.6


NEW COMMUNICATIONS TECHNOLOGIES : APPLICATIONS FOR DEVELOPMENT

IWAN D. SIMATUPANG PT INDOSAT - INDONESIA

Presented at "COMMUNICATIONS, CONVERGENCE AND DEVELOPMENT AMIC ANNUAL CONFERENCE PROGRAM

Bangkok, J u n e 23-25, 1994


COIVIMUNICATIONS, C O N V E R G E N C E AND D E V E L O P M E N T AMIC ANNUAL CONFERENCE PROGRAM

N e w C o m m u n i c a t i o n Technologies : A p p l i c a t i o n s for D e v e l o p m e n t P T INDOSAT

1.

INTRODUCTION Welcome to the AMIC session describing Communications, Convergence and Development. I am delighted to be nere today to share my ideas on the very important topic "New Communications Technologies : Applications for Development" with you. T h e telecommunications marketplace is complex, dynamic and enormous. Worldwide annual spending on telecommunications product and services will reach a trillion dollars by year 2001 (Figure 1). The market potentially encompases every person an every computer on earth. Communications technology development has brought forward the introduction of various new and convenient services, including mixed services using a single terms mission lines. Technological advancements have opened new horizons and new opportunities which never been predicted before. The global communications network enables us to access, collect, process and deliver information from an office or a terminal to almost any place in the world. Indeed we are now part of the global connectivity, global mobility and global information society. W i t h i n t h i s e n v i r o n m e n t , a nation or a region with different stages of communication infrastructure can no longer progress or have a competitive advantage without the support of high-quality communications networks. Several systems which have played a very significant role in the improvement of communications services include satellite, optical fiber and switching systems. The improvement has also been supported by the advances in standardization and software development. T h e following paragraphs will discuss a number of important developments and trends in telecommunications. These include communications networks optical fiber, satellite technologv, ISDN, personal communication system (PCS), ATM and Broadband services, and factors influencing services development, services development challenges, and applications for development.

l


Figure 1a : The World Market for Telecommunications

Figure 1b : Basic Service Will Continue To Dominate

1990 1992 1994 1996 1998 2000

COMMUNICATIONS TECHNOLOGY Communications Networks Currently, public telecommunications networks are going through a period of unprecedented change as they evolve from voice services networks to become integrated, multimedia information services network with a wide range of services. The expanded needs of the communications users will be fulfilled by the future networks through advances in key technologies such as integrated electronics, fiber optic communications, artificiafintelligence and distributed processing. Advance of technology has also made it possible to introduce numerous enhancement of services on the embedded public telephone networks. The I n t e g r a t e d Services Digital Network (ISTJN) takes advantage of the digitizations of the voice network to provide integrated voice and data services. Newer technologies such as cellular mobile for both voice and data, V-sat, fiber optics and personal mobile satellite services have become widely available. These technologies have led to cheaper, smarter n e t w o r k s / t e r m i n a l s and more cost effective services. A range of choices and solutions can be found or tailor made to meet precisely defined communications needs or to solve communications problem. Optical F i b e r T e c h n o l o g y Technical development of optical fiber and associated digital transmission s y s t e m s has been occuring rapidly over the last several years. Not only has the capacity of fiber been increased (Giga bit system, see Figure 2), but also t h e average distance between repeaters has" lengthened. Consequently, optical fiber can now be employed throughout the network. Installations of optical fiber in t h e international and the national cable n e t w o r k will bring great advantages to operators and business customers, particularly in providing huge capacity transmission medium, increasing the availability of network lines and in providing the building blocks for private networks. Several countries have already completed a fiber optic backbone network and have links to international fiber optic cables. Within the next five years or so, fiber will become t h e medium of choice for most international traffic and an increasing percentage of inter-city national traffic. For the Asia Pacific Region 5 Giga bits system will be ready for operation by 1995 - 1996.

2


Figure 2a : Progress of Longhaul Experiments on Optical Amplifier Submarine Systems

Figure 2b : Advances in Microelectronics Integrated Circuits

In order to exploit the full potential of fiber and to justify costwise t h e installation of fiber rather than copper in the local loop, the network operators will need to develop a new range of sophisticated-based services. T h e three key technologies of fiber optics, data compression and ATM switching promise a future in which bandwidth capacity is the underlying force. Not only distance sensitive tariffing^ but also volume-based tariffing will be redundant. For almost the first time, the network operators will no longer need to use tariff s t r u c t u r e s as a way of rationing network access, but i n s t e a d will need to concentrate their resources on developing demand for new services with the availability of enormous capacity in fiber optic network, sophisticated services like ISDN, and ATM switch will require h i g h e r a b a n d w i t h could be implemented. Satellite Communications W h e t h e r capacity is concentrated in a few large spacecraft or spread among smaller platforms, the market for satellite communications continues to grow. Satellite payloads will become more efficient, using spot beams to illuminate centers of high-density traffic. The beams will be steerable, allowing them to be switchecT to any new high-traffic area to emerge during t h e fife of t h e satellite. T h e future development could be an extrapolation of t h e p r e s e n t spacecraft configurations that would lead to multiple payload of satellites, offering a wide diversity of serives, with mass in the range of 3000 to 5000 kg, launched by either the NASA Shuttle, ARIANE, Hughes or Delta. The present state of the art of 10 years' design lifetime would probably be extended to twelve years, or fifteen years. The above scenario is appealing as, eventhough the cost per spacecraft increases with size, t h e specific cost (cost per kg, or b e t t e r per channel-year) decreases with growing mass. Market studies indicate that beyond 1995 the demand for such satellite should be in order of about 20 to 40 per year. Previous generation of satellite use GSO technology, and currently there is a growing n u m b e r of blueprints of global low-earth orbiting satellite system. H u n d r e d s of satellites will come in with the advent of application of Global Mobile Satellite System. Not only with mobile communications be a matter for t e r e s t r i a l s y s t e m s but also for satellite s y s t e m . Along w i t h mobile communications"^ global paging will also implement. The following is a list of mobile satellite project that are planned to be in operation (Table 1.)

3


Table 1 : Selected Mobile Satellite Projects Name

Teledesic Iridium

Major

Investors

Projected Launch ;

2001

Motorola. BCE. DDI. Great: Wall Industry. Rytheon. Sprint, STET. United Comm. Industries

1998

Craig McCaw. Bill Gates

Main

Services

Satellites

System Type

400

840

Big LEO

420

56

Big LEO

MEO or GEO

' A T M - b a s e d svcs. Voice, cata, messaging,pacing, positioning

Nbr. of

| Altitude i (miles)

i

1998-2000

Voice, cata. messaging.paging.

'

*

Airtouch, Alcatel, Alenia Spazio, Dacom, Deutsche ! Deutche Aerospace, Hyundai, Loral Qualcomm, Vodafone.

1998

Voice, data, messagmg.paging, positioning

750

46

MEO

Odyssey

TRW

1998

12

Big LEO

Ellipsat

Fairchild Space, Harris, Esrali Aircraft Industries. Mobile Communications Holdings. Westinghouse

1997

Elliptical orbit

15

MEO

Aries

Constellation Comm., Defense Systems

1997

Voice, messaging, paging, positionig

1,000

43

Big LEO

Starsys

Starnet

1995

Messaging, paging, positioning

1,300

24

Little LEO

Orbocomm

Orbital Sciences. Teleglobe Canada

1995

Two-way messaging, positioning

470

26

Little LEO

Project 21

Inmarsat (carrier consortium)

Globalstar

j

j

Voice, data, messaging,paging, positioning

... ... Voice, messaging. paging positionig

10.000

;

•

Undecided S o u r c e : C W I 2 5 A p r i l 1994

Asynchronous Transfer Mode (ATM) & B-ISDN ATM is a high-speed form a packet switch in which information is carried in short fixed-length cells. ATM is being standardized by CCITT for use in Broadband ISDN (B-ISDN). It provieds a uniform method, of transporting and switching; any kind of information (voice, data, text, inage and video) in an integratecl network. It is well suited to the bursty and variable-bit-rate signals anticipated in multimedia applications. ATM cells are transported between network elements using SONET/SDH (Sysnchronous optical Network/Digital Hierarchy) fiber-optic facilities. ATM allows the operating companies an economical way to upgrade the switching infrastructure for the future. Early ATM broadband systems is planned to be implemented to support users requiring higher bandwidth and bandwidth allocation on demand for interactive image-intensive applications and advanced m u l t i m e d i a services. Connection-oriented and connections services at rates above 50 Mbps will be offered to satisfy user demand which will further stimulate applications development. Cellular & Personal Commmunications Services (PCS) Mobile cellular telephone, first marketed in the early 1980s, has proven to be the impetus for an ever-expanding class of wireless mobile, transportable, and personal communications products and services. The idea behind celllular services which makes it and the other wireless devices practicable, is that the same frequency channels can be systematically reused. Cellular uses lowpowered transmitters covering gegraphic cells, usually less than 8 - 1 0 miles in radius. The Personal Communications Services is the vision for the future and many developments are going on using various technologies, CDMA, TDMA etc. the future vision is one personel number, anytime, anywhere. In this decade, the emergence of new mobile and personal communications technologies is expected to accelerate, fueled by consumer demand and industry innovation (Table 2). 4


Table 2 : Internatio ia\, Digital Standards in Technical Comparison Region

North America

I

us,

Europe/ Asia

Korea

! Europe

I Frequency range (MHz)

624-349 869-694

Acce33 method Modulation

CDMA TDMA'FOO pi/4 DQJPSK QPSK/ DCPSK VSELP. ADPCM, 7.25 kbos 8.55 kbps 30 1230

Speech Codec Carrier separation (kHz) Number of Frequencies Output pwr. (W) Data svc. (kbps)

824-849 869-894

10

332

0.6,12.3.6 8

TDMA/FDD GMSK RPE-LTP, 13 kbps 200 ! 124

I

! 1710-1785 i 810-826 1805-1655 | 940-956 i 1429-1513 TDMA/FDD ! TDMA/FDD GMSK | pi/4 DQPSK

890-915 935-960

j 0 - 2 - 6 . 3 j 2.5.8.20 | 9.6

Japan

RPE-LTP, 13 kbps | 200

VSELP. 5,7 kbps ' 25

1

1

; 374

j 1600

!j 0.25, 1 ' 9,6

UK. CND France, HK, S'pore, China 864-868

Europe

Japan

1830-19C:

1900

TDD/TDMA TDMA Two —level GMSK GFSK ADPCM. i ADPCM, 32 kbos 1 32 kbps 100 I 1728

i

j 0.3,0.8.2

40

; 10

j 0 . 0 1 - 0 . 1 0 ! 0.25 ! 9.6-14.4 ' 25 ... 1 ICO

TDD/TDMA pi/4 DQPSK DQPSK ADPCM. 32 kbps 300

! 40 0.10

Source : Dataquest, Focus Hep. 7/93

Many industry experts believe that wireless communications for voice, data and other services is emerging as the most significant telecommunications development since fiber optics. The level of industry activity in research and development and the number of different technology and s t a n d a r d s being pursued are so great. Initial experiments have begun in PCS technologies using various frequency bands and with numerous related techniques. Research indicated t h a t factors driving t h e PCS market include the demand for immediate access to people a n d i n l o r m a t i o n : ubiquitous, low-cost, user-friendly communications; a personal communications ID that can track a caller's location and t h e location of the called party; a higher degree of security that what has not been available in older systems; and release from constraints of wired networks. SERVICES APPLICATIONS FOR DEVELOPMENT T h r e e m a j o r factors influencing n e w services d e v e l o p m e n t s T h e best achievement in promoting telecom services in a country with different s t a g e s of development, basicly depends on t h r e e major taactors (Figure 3) : a. b. c.

-Technology; Market needs; Regulations. Figure 3 : The Three Major Factors Influencing The Global Telecom. Industry Technology deployment is designed to introduce new business and/or new services

Regulatory relorm should introduces earning flexibilities in return for improved networks h services

Market needs are addressed by competing service prociders

The best achic'-'onient in promoting telecom, industry in a country

5


Technology curently progressing tremendeously, it open up man} r new business opportunities and new services applications. The continuous developm e n t of technology as mentioned above provide many choice to fullfill t h e market needs. Corelation of services, technology and m a r k e t is shown in c h a r t Figure 4. Service/technologies by market maturity. The purpose of t h e chart is to show association of services and enabling technologies which require similar levels of technological sophistication of customersand which require in similar "critical mass" level of market maturity for demand to develop. T a k e for example GSM cellular, which falls u n d e r t h e g e n e r i c "Digital Cellular" name on t h e chart. This service requires in greater m a t u r i t y level than analog, because its biggest advantage is better frequency reuse; and this irrelevant until analog subscribers fill available frequencies with their traffic. Digital handsets are significantly more expensive than analog at present, so it only makes sense to sell digital service in areas which have reached sufficient market maturity. Regulatory provides a base for earning flexibility in r e t u r n for improve network and services. Combination of those three factors will determine the appropriate business and services need to be implemented in a particular country.

Figure 4 : Major Services / Technology By Market Maturity Level

Mith Difiul Ccltuiaf?

MicroCelV DECOCT 3 7 ,

talUCO

5-iithct3 lnunutioful El InO Crcdll CutJ IftlCf » . T l n i S

Tcctinicat Sophistication Required

An.** C£l!ulM

IntcUat i l i c d Service!

Indonriia 19937

i l a r i a Mattiriry

Level

l'-irji

S e r v i c e D e v e l o p m e n t Challenges a.

Priorities T h e goals of development of telecommunication services in each country are different. The variance of goals a r e many influenced by each countries individual characteristics, such as in developed countries, it ranges from variety of services, high quality, realible networks, and low cost are some of the goals wich take precedence. For developing country, t h e development of t e l e c o m m u n i c a t i o n s systems still are concentrated to the provision of telecommunications i n f r a s t r u c t u r e and basic services such plain old t e l e p h o n e services (POTS). Driven by t h e country's economic g r o w t h , developing countries require a strong telecommunications infrastructure such that a "bottleneck' is not created. 6


b.

The Role of Regulations T h e role of regulations in establishing a condusive e n v i r o n m e n t of telecommunications services is dominant. Each services must be regulated in such a way so that they do not overlap with each other, thus creating overly complex and inefficient national network filled with many proprietary individual networks. In business environment filled with dynamic changes, t h e role of regulations is also dominant in the creation of a new regulations. These new regulations must be created in a transparant environment where each new services must be analyzed against many factors. Since each country has its own individual environment ana state of telecommunications development, thus each country will face different problems and different regulation conditions. Each countries regulations although is the same for basic services but for each new service each country's regulatory board will look at t h e problem differently from their own prespective. Some boards will favor a quick implementation of new technology, while others will be cautious and wait until the technology m a t u r e s . T h e r e is no one right or wrong answer. The government which authorizes its regulatory body, has the objective to promote the market efficiently, fulfill t h e demands of the market, and increase the quality of service. The objective of the government can be analyzed and derived from recent global t r e n d s which are happening in every country which is changing their state of a highly regulated monopoly system and entering a of a more competitive environment. These regulator} 7 framework changes in Indonesia can seen in the following Table 3.

Table 3 :

Current Structure of Telecommunications Industry in Indonesia

SECTOR SEGMENT

PUBLIC

B NETWORK A S 1 SPECIAL C NETWORK

s E R V i

N O N

c LU

s

VAS

|LOCAL DOM LONG 1 CIST. INT'L MOBILE CELLULAR FIXED CELL. VSAT

! EH. S/F FAX. ETC

LEGAL FRAMEWORK

- > 1980'

MONOPOLY MONOPOLY

1. TELKOM • 1. TELKOM :

COMPETITION COMPETITION

1. INDOSAT!

s

PRIVATE NETWORKS

CUSTOMER PREMISE EQUIPMENT

1. RHP

1

KEY OPERATORS 1991 1992

ALLOWED

COMPETITION

1.CSM

1. PERTAM.NA 2. PN GAS 3. BANKS

1. TELKOM

7

1993

1. 1. 2. 1.

1.TELEKO - 1. ELEKTRIMINDO I NDO N.

COMPETITION

1 '• c

EQUIPMENT

1990

1994

I

COMPETITION COMPETITION

B A

ij

1986 I

SATELINDO CPS SATELINDO RATELINDO

1. SALIM GROUP

1.LTS ARTA 2. GARUDA

1. SKSP

1 3 AT A M INDO

1. INDOFAX

1 SISTELINDO

4. PJKA 5. OIL COMPA." ..ES 6. TAXI COMP/=.VES

MULTIPLE PLAYERS : 1. ELEKTRINDO N. 2. DIAN GRAHA E. 3. DAENG BROS 4. HAR1FF DTE

S. BERCA 6. CENTRONIX 7. BAKRIE E. S. MAHAGUNAM.

9. CITACOM 10. WASANA C 11. STIMECE. 12. NASIO SDN ETC


c.

Lack of Funding Telecommunications is considered to be one of t h e capital intensive business in the world. Telecommunications company around the world u s e a wide variety of funding sources to pay for t h e d e v e l o p m e n t of their services, depending on their financial situation, constraints placed on t h e m by their country in which they operate. T h e top level split among direct funding methods is debt vs." equity, of course. Most large operators in mature markets use both ways to acheive their objectives. I t t h e US and J a p a n , w h e r e t h e t e l e c o m m u n i c a t i o n s markets is open to comptetion are publicly owned principally through the stoch exchange and have issued bonds and commercial papers, as well as b a n k borrowing in some instances, to fuel t h e i r g r o w t h . In addition to these direct methods, there are indirect methods which are widely used in developing countries, such as : j o i n t v e n t u r e s , Build Operate and Transfer (BOT) schemes and Management Contracts.

d.

Human

Resources

Communication technology is highly technical intensive, and to run telecommunications services require support of knowledgeable, skilled a n d p r o f e s i o n a l s p e r s o n . P e o p l e is t h e k e y succes e l e m e n t in communication business and by having t h o s e kind of people good quality of services could be delivered to c u s t o m e r in order to e n s u r e company success and continuously grows. For sophisticated services more highly skill person are needed and some t i m e s not available in the labour market. T h e r e f o r e company h a s to make plan to traine its employs to be able provide good services. Application For Development T h e development of communication has created t h e global communication n e t w o r k s with a fast increase in the flow of informations, and a rapid development of product and services and technologies have changed people in doing business and conduct daily lives. Various application of communication technology for development is : a.

P r o m o t e a n d e n c h a n c e business p r o d u c t i v i t y T h e availability and ease of access of i n f o r m a t i o n t h a t offer by communications networks provide links to informations sources or data base. By having good and a c u r a t e i n f o r m a t i o n s m o r e b u s i n e s s t r a n s a c t i o n could be carried out and open t h e possibility of a nation more competitive.

b.

F a c i l i t a t i n g T r a d e Activities Certainty of product delivery is a key sucess for business. Hundreds of containers arrive every day at the airport a n d seaport. T h e y need a good and reliable information system reliable to clear all goods out of the customs. Data Communication Network (EDI) is the right choise to be implemented.

c.

E n c h a n c e E d u c a t i o n System TV and Radio Broadcast have been used for distance leaving in several c o u n t r i e s , help t h e expantion of leaving o p p o r t u n i t y . S n a r i n g the experiences and discussion by using teleconference amongs universites provides useful and up-to-date information. 8


d.

P r o d u c e Geography MAP By using Satellite Imagery and r e m o t e sensing technology produce accurate and up-to-date geography map of a particular area on the earth surface. Study and analyse topography is useful make city planning, road construction, dam, and irigation etc.

e.

To locate natural resources Satellite technology makes possible to get information on the location of natural resources (mineral, oil etc.). "So exploration of those natural resources is easier to carriage out.

f.

E l i m i n a t e Isolation of Rural Areas Satellite communication provide a fast and economical solution to growing need to serve rural and r e m o t e communication with long distance link to the center of national activities. The communication advantages of distance insensitivitv and the ability to bridge geographic barriers proves to be ideal for developing nations.

I n d o n e s i a E x p e r i e n c e : Service Aplication in Cellular The cellular service was first implemented in 1986 as a complementary service to the fixed line POTS. Provision of demand by fixed line was slow due to long lead development time and high association with each line, thus this is turn created a suppressed demand crying out for telecommunications services. This condition forced the MTPT grand licenses for cellular aplication to private participation based on a revenue sharing scheme. The cellular licenses as can be seen in Table 4, both for national andregional licenses are designed lor to alliviate the bottlenecked demand. As t h i s s e e m e d like t h e logical solution, t h e r e s u l t s were far from ideal. Cellular operators in Indonesia are characteristicted by two factors: a. high cost of handset terminals; b. Inadequate quality of service.

Table 4a Investor RHP RHP EN EN EN CPS CPS Telekomindo Telekomindo Telekomindo Telkom Telkom Telkom Telkom TOTAL

T h e c a p a c i t y a n d number of subscribers of m o b i l e s e r v i c e in I n d o n e s ia (As per April 1993) System Location C a p a c i t y Subscr. jNMT-450

JNMT-450 IAMPS-800 jAMPS-800 JAMPS-800 iAMPS-800 IAMPS-800 JAMPS-800 iAMPS-800 |AMPS-800 :TACS-450 iTACS-450 :TACS-450 ITACS-450

Jkt - Bdg Jkt - Bdg Jkt - Bdg Medan U. Pandang Surabaya Semarang Palembang Denpasar Balikpapan Jakarta Surabaya Jakarta Batam

15,000 15,000 25,000 7,000 2.500 6.000 3,000 2,300 2,500 3,000 2,150 500 3,000 500 S7.450

15,000 859 16,351 239 60 3,573 421 48 175 36 1.541 126 2,988 78 41.495

T a b l e 4 b : N u m b e r of Subscrib ers of c e l l u l a r Telephone Year

STKB Inti STKB C

1987 1988

2.504

1989

3,303

1990

6,096

1991

6,069

I

STKB N

TOTAL

4.199

—

4,199

6.504

--

9.008

9,620

—

12.923

12,000

—

18,096

14,650

3,782

24,501

14.735

14,742

35,546

15.900

21.187

42.286

j 1992

6,069

1993* 5.199 Note : * up to August


a.

High Cost of Handset

Terminals

In the early years of service, cost of terminal was extramelv high in comparison with other countries (USS 8,500 vs US$ 1,500). This was still acceptable due to the novelty of the service. As years gone by cost of terminals internationally went steadyly down, while in Indonesia it was stand. In 1993, the government issue a decree to regulate terminal cost to between US$ 2,000 to US$ 6,000. b.

Inadequate quality of service Service was marred by severalproblems, mostly typical call blockage and low Succsesfull Call Ratio. This service problem was mostly due to : 1)

system design parameters was underestimated;

2)

traffic differential due to area shifting was unpredicted;

T h e s e system problem inherents led to many h e a t e d customer complaints, which were further compounded by slow response time of operators to fixe the solution. Policy goals of government curently is to expand system capacity and other system service level currently, the government has issues licenses for digital cellular (GSM) systems designed for frequency reuse thus avoiding previous system blockage problems due to limited frequency availability. This system along with a tight reign on terminal cost is viewed as the solution of the future. CONCLUSION Communications technologies are progressing very rapidly creating networks and facilities that are available for development activities in many countries. Communications system have contributed significantly to national development. The globalization of telecommunications and the rapid development of new communication products and services have the potential to e n n a n c e t h e quality of life, protect environment, and to create a knowledge-based society.

10