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New communications technologies : applicationsfor development

Simatupang, Iwan

1994

Simatupang, I. (1994). New communications technologies : applications for development.In AMIC Conference on Communication, Convergence and Development: Bangkok, Jun23‑25, 1994. Singapore: Asian Media Information and Communication Centre.

https://hdl.handle.net/10356/92508

Downloaded on 17 Jun 2021 17:34:37 SGT

New Communications Technologies: Applications For Development

By

Iwan Simatupang

Paper No.6

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

NEW COMMUNICATIONS TECHNOLOGIES :

APPLICATIONS FOR DEVELOPMENT

IWAN D. SIMATUPANG

PT INDOSAT - INDONESIA

Presen ted a t

"COMMUNICATIONS, CONVERGENCE AND DEVELOPMENT

AMIC ANNUAL CONFERENCE PROGRAM

Bangkok, J u n e 23-25, 1994


C O I V I M U N I C A T I O N S , C O N V E R G E N C E A N D D E V E L O P M E N T A M I C A N N U A L C O N F E R E N C E P R O G R A M

New Communica t ion Technologies : Appl icat ions for Development

PT 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.

The 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.

Within this envi ronment , 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.

The 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

Communica t ions Networks

Currently, public telecommunications networks are going through a period of unprecedented change as they evolve from voice services networks to become integrated, mult imedia 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 inte-grated 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 In tegra ted 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 satel l i te services have become widely available. These technologies have led to cheaper, smarter ne tworks / t e rmina 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 Fiber Technology

Technical development of optical fiber and associated digital transmission systems 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 the average distance between repeaters has" lengthened. Consequently, optical fiber can now be employed throughout the network.

Instal lat ions of optical fiber in the international and the national cable ne twork 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 the medium of choice for most internat ional 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

In order to exploit the full potential of fiber and to justify costwise the installation of fiber rather than copper in the local loop, the network operators will need to develop a new range of sophisticated-based services. The three key technologies of fiber optics, data compression and ATM switching promise a future in which bandwidth capacity is the underlying force. Not only dis-tance 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 ins tead 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 igher a bandwi th could be implemented.

Sate l l i te Communications

Whether 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 the fife of the satellite.

The future development could be an extrapolation of the presen 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 in-creases with size, the specific cost (cost per kg, or be t te 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 number of blueprints of global low-earth orbiting satell i te system. Hundreds 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 sys tems but also for satel l i te sys tem. Along wi th 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.)

Figure 2b : Advances in Microelectronics

Integrated Circuits

3


Table 1 : Selected Mobile Name

Teledesic Iridium

Project 21

Globalstar

Odyssey

Ellipsat

Aries

Starsys

Orbocomm

M a j o r I n v e s t o r s

Craig McCaw. Bill Gates ;

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

Inmarsat (carrier consortium)

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

TRW

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

Constellation Comm., Defense Systems

Starnet

Orbital Sciences. Teleglobe Canada

j

Satellite Projects P r o j e c t e d

L a u n c h

2001

1998

1998-2000

1998

1998

1997

1997

1995

1995

M a i n S e r v i c e s

' ATM-based svcs.

Voice, cata, messaging,pacing, positioning

Voice, cata. messaging.paging.

Voice, data, messagmg.paging, positioning

Voice, data, messaging,paging, positioning

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

Voice, messaging, paging, positionig

Messaging, paging, positioning

Two-way messaging, positioning

| A l t i t u d e i ( m i l e s )

400

420 i

'

750

j

10.000 ;

•

Elliptical orbit

1,000

1,300

470

Nbr. of S a t e l l i t e s

840

56

*

46

12

15

43

24

26

S y s t e m T y p e

Big LEO

Big LEO

MEO or GEO

MEO

Big LEO

MEO

Big LEO

Little LEO

Little LEO

U n d e c i d e d Source : CWI 25 Apr 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 operat ing 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 inter-active image-intensive applications and advanced mult imedia 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 low-powered 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 Region

Frequency range (MHz)

Acce33 method Modulation

Speech Codec

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

North America

624-349 869-694

TDMA'FOO pi/4 DQJPSK

VSELP. 7.25 kbos 3 0

332

ia\, Digital Standards in Technical Comparison us, Korea

824-849 869-894

CDMA QPSK/ DCPSK ADPCM, 8.55 kbps 1230

I Europe/ ! Europe Japan Asia

I ! 890-915 935-960

TDMA/FDD GMSK

RPE-LTP, 13 kbps

1710-1785 i 810-826 1805-1655 | 940-956

i 1429-1513 TDMA/FDD ! TDMA/FDD GMSK | pi/4 DQPSK

RPE-LTP, 13 kbps

VSELP. 5,7 kbps

200 | 200 ' 25 1 1

10 ! 124 ; 374 j 1600

I !

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

TDMA Two —level GFSK

Europe Japan

1830-19C: 1900

TDD/TDMA TDD/TDMA GMSK pi/4 DQPSK

DQPSK ADPCM. i ADPCM, ADPCM. 32 kbos 1 32 kbps 32 kbps 100 I 1728 300

i ! 40 ; 10 40

0.6,12.3.6 j 0 - 2 - 6 . 3 j 2 .5.8.20 j 0.25, 1 j 0.3,0.8.2 j 0 .01-0 .10! 0.25 0.10 8 | 9.6 ' 9,6 ! 9.6-14.4 ' 25 ... 1 ICO

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 tandards being pursued are so great.

Initial experiments have begun in PCS technologies using various frequency bands and with numerous related techniques. Research indicated tha t factors driving the PCS market include the demand for immediate access to people and in lormat ion: ubiquitous, low-cost, user-friendly communicat ions; a personal communications ID that can track a caller's location and the location of the called party; a higher degree of security that what has not been avail-able in older systems; and release from constraints of wired networks.

SERVICES APPLICATIONS FOR DEVELOPMENT

Three major factors inf luencing n e w services deve lopments

T h e best achievement in promoting telecom services in a country different s tages of development, basicly depends on t h r e e major ta (Figure 3) :

with actors

a. -Technology; b. Market needs; c. Regulations.

Figure 3 : The Three Major Factors Influencing The Global Telecom. Industry

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

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

Technology deployment is designed to introduce new business and/or new services

Market needs are addressed by

competing service prociders

5


Technology curently progressing tremendeously, it open up man} r new busi-ness opportunit ies and new services applications. The continuous develop-ment of technology as mentioned above provide many choice to fullfill the market needs.

Corelat ion of services, technology and market is shown in char t Figure 4. Service/technologies by market maturity. The purpose of the 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.

Take for example GSM cellular, which falls under the gener ic "Digital Cellular" name on the chart. This service requires in greater matur i ty 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 re turn for improve net-work 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

Tcctinicat

Sophistication

Required

Dif iu l Ccltuiaf?

talUCO

MicroCelV D E C O C T 3 7 ,

5-iithct3 lnunutioful El

InO Crcdll CutJ IftlCf » .T ln iS

A n . * * C£l!ulM

IntcUat i l i c d Service! Indonriia 19937

i l a r i a Mattiriry Level l'-irji

Serv ice Development Challenges

a. Priorities

The goals of development of telecommunicat ion services in each country are different. The variance of goals are 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, the development of te lecommunicat ions systems still are concentrated to the provision of telecommunications inf ras t ructure and basic services such plain old te lephone services (POTS). Driven by the country's economic growth , developing countries require a strong telecommunications infrastructure such that a "bottleneck' is not created.

6


b. The Role of Regulations

The role of regulations in establishing a condusive environment 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, the 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 the 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 matures . There is no one right or wrong answer.

The government which authorizes its regulatory body, has the objective to promote the market efficiently, fulfill the 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 ends 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

s E R V i c

LU

s

B A S 1 C

N O N

B A

i s j 1 '• c

EQUIP-MENT

PUBLIC NETWORK

|LOCAL DOM LONG

1 CIST. INT'L

MOBILE SPECIAL

NETWORK CELLULAR

FIXED CELL. VSAT

VAS ! EH. S/F FAX. ETC

PRIVATE NETWORKS

CUSTOMER PREMISE EQUIPMENT

LEGAL FRAMEWORK

MONOPOLY MONOPOLY

COMPETITION COMPETITION

COMPETITION COMPETITION

COMPETITION

ALLOWED

COMPETITION

KEY OPERATORS - > 1980' 1986 I 1990 1. TELKOM • 1. TELKOM :

1. INDOSAT! 1. RHP

1 1.TELEKO -

MINDO I

1.CSM

1. PERTAM.NA 4. PJKA 2. PN GAS 5. OIL COMPA." 3. BANKS 6. TAXI COMP/=

MULTIPLE PLAYERS :

1. TELKOM 1. ELEKTRINDO N. 2. DIAN GRAHA E. 3. DAENG BROS 4. HAR1FF DTE

1991 1992 1993 I

1. ELEKTRI-NDO N.

1. SALIM GROUP

1 3 AT AM-INDO

1.LTS ARTA 2. GARUDA

1. INDOFAX

1. SATELINDO 1. CPS 2. SATELINDO 1. RATELINDO

..ES

.VES

S. BERCA 9. CITACOM 6. CENTRONIX 10. WASANA C 7. BAKRIE E. 11. STIMECE. S. MAHAGUNAM. 12. NASIO SDN

ETC

1994

1. SKSP

1 SISTE-LINDO

7


c. Lack of Funding

Telecommunications is considered to be one of the capital intensive business in the world. Telecommunications company around the world use a wide var ie ty of funding sources to pay for the deve lopment of their services, depending on their financial situation, constraints placed on them by their country in which they operate. The 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 he US and Japan, where t h e te lecommunica t ions markets is open to comptetion are publicly owned principally through the stoch exchange and have issued bonds and commercial papers, as well as bank borrowing in some instances, to fuel the i r g rowth . In addition to these direct methods, there are indirect methods which are widely used in developing countries, such as : jo int ven tu re 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 and profes iona ls person. People is t h e key succes e l e m e n t in communication business and by having those kind of people good quality of services could be delivered to customer in order to ensure company success and continuously grows.

For sophisticated services more highly skill person are needed and some t imes not available in the labour market . Therefore company has to make plan to traine its employs to be able provide good services.

Appl icat ion For Deve lopment

T h e development of communication has created the global communication networks with a fast increase in the flow of informations, and a rapid devel-opment 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 and enchance business product iv i ty

T h e availabili ty and ease of access of informat ion t h a t offer by communications networks provide links to informations sources or data base. By having good and acurate in format ions more business t ransac t ion could be carried out and open t h e possibili ty of a nation more competitive.

b. Faci l i tat ing Trade Activities

Certainty of product delivery is a key sucess for business. Hundreds of containers arrive every day at the airport and seaport . They 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 Educat ion System

TV and Radio Broadcast have been used for distance leaving in several countr ies , help the expantion of leaving oppor tun i ty . Snar ing the experiences and discussion by using teleconference amongs universites provides useful and up-to-date information.

8


d. Produce Geography MAP

By using Satel l i te Imagery and remote 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. El iminate Isolation of Rural Areas

Satel l i te communicat ion provide a fast and economical solution to growing need to serve rural and remote 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.

Indonesia Exper ience : 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 t ime 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 pri-vate 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 th is seemed like the logical solution, the resul 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 The capac i t y mob i le serv ic

a n d number e in Indones

of subscribers of ia (As per April 1993)

Investor

RHP RHP EN EN EN CPS CPS Telekomindo Telekomindo Telekomindo Telkom Telkom Telkom Telkom TOTAL

System

j N M T - 4 5 0 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

Loca t ion

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

Capac i ty

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

Subscr.

15,000 859

16,351 239

60 3,573

421 48

175 36

1.541 126

2,988 78

41.495

Table 4b:

Year

1987

1988

1989

1990

1991

1992

1993*

Number of Subscrib Telephone

STKB Inti

2.504

3,303 I

6,096

6,069 j

6,069

5.199

STKB C

4.199

6.504

9,620

12,000

14,650

14.735

15.900

ers of ce l lu lar

STKB N

—

- -

—

—

3,782

14,742

21.187

TOTAL

4,199

9.008

12.923

18,096

24,501

35,546

42.286 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;

These system problem inherents led to many hea ted 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. Communicat ions 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 ennance the quality of life, protect environment, and to create a knowledge-based society.

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