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Digital Services in the 21st Century IEEE Press 445 Hoes Lane Piscataway, NJ 08854 IEEE Press Editorial Board Tariq Samad, Editor in Chief Giancarlo Fortino Xiaoou Li Ray Perez Dmitry Goldgof Andreas Molisch Linda Shafer Don Heirman Saeid Nahavandi Mohammad Shahidehpour Ekram Hossain Jeffrey Nanzer Zidong Wang Digital Services in the 21st Century A Strategic and Business Perspective Antonio Sánchez Belén Carro Universidad de Valladolid, Spain Copyright 2017 by The Institute of Electrical and Electronics Engineers, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permission. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic formats. For more information about Wiley products, visit our web site at www.wiley.com. Library of Congress Cataloging-in-Publication Data is available. ISBN: 978-1-119-31485-1 Printed in the United States of America. 10987654321 To Diego Contents Foreword by Vinton G. Cerf xi Preface xiii Acknowledgments xv List of Contributors xvii 1. The Evolving Voice Services: From Circuit Switching to Voice-Over LTE/FTTH) 1 1.1 Customer Need: Remote Communication 1 1.2 FTTH Voice 2 1.3 Voice-Over LTE (VoLTE) 2 1.4 Voice-Over WiFi 4 1.5 High-Definition (HD) Voice 5 1.6 Over-the-Top Substitutes 5 Acronyms 6 Notes 6 2. Internet Services: From Broadband to Ultrabroadband 9 2.1 Customer Need: Connectivity and Social Inclusion 10 2.2 Fixed Lines: Deploying Fiber Closer to Customer Premises: xDSL, Cable, FTTH 11 2.3 Mobile: 4G LTE/LTE-Advanced 19 2.4 WiFi AC (Gigabit) 23 2.5 Universal Access 23 Acronyms 24 Notes 27 3. Convergence: Bundling Fixed Line and Mobile Services 31 3.1 Customer Need: One-Stop Shop 31 3.2 Fixed Line and Mobile Service Bundles 31 3.3 Integrated Operators 32 Acronyms 35 Notes 35 vii viii Contents 4. Devices: Smartphones 37 4.1 Customer Need: Mobility 37 4.2 Vendors 38 4.3 Operating System Duopoly 39 4.4 Hardware Specifications 40 Acronyms 46 Notes 47 5. The Evolving Pay TV 51 Francisco Saez and Joaquín M. Lopez Muñoz 5.1 Customer Need: Entertainment 51 5.2 Content Wars 53 5.3 Aggregation versus Diversity 56 5.4 The Role of Advertising 57 5.5 Technology: Satellite, Cable, and IPTV 58 5.6 Pay TV Technicall Key Components 58 5.7 Evolution of Interactive Pay TV Technologies 60 5.8 Video Definition 64 Acronyms 65 Notes 66 6. Enterprise: From Machine-to-Machine Connectivity Toward Internet of Things 69 6.1 Customer Need: Remote Automation 70 6.2 Basic Connectivity and Managed Connectivity 71 6.3 Low-Power Wide Area: LTE-MTC and Alternatives 77 6.4 Applications: Toward Internet of Things 86 6.5 Acronyms 94 Notes 95 7. IT: Cloud 103 Stefan Wesner 7.1 Global Trends Driving the Cloud Evolution 104 7.2 Virtualization as Enabling Technology 105 7.3 The Layered Cloud Model 106 7.4 Advanced Cloud Models 111 7.5 Future Cloud Models 113 7.6 Conclusion and Summary 115 Notes 115 8. Emerging Markets: Mobile Money for the Unbanked 117 8.1 Customer Need: Remote Payments 117 Contents ix 8.2 Large Unbanked Population in Emerging Markets 118 8.3 Very High Penetration of Mobile Based on Feature Phones 129 8.4 Services: Remittances and Payments 137 Acronyms 139 Notes 139 9. Value-Added Consumer Services 143 Jesus Llamazares Alberola 9.1 Introduction 143 9.2 Disruption is the New “Karma” 143 9.3 Adjacent Industries Joining Multilayered Value Chain 145 9.4 Telco’s Role and Challenges in the New Paradigm 146 9.5 But What do we Understand by VAS Today? 148 9.6 So What’s the Future for VAS and, Thus, for Telcos? 152 Acronyms 153 Notes 153 10. Mobile Virtual Network Operators/Second Brands 155 Jaime Bustillo 10.1 From Oligopoly to Marketplace 156 10.2 MVNO Ecosystem: End Customer Facing or MVNOs 157 10.3 MVNO Ecosystem: Technology Enablers, MVNE, and MVNA 160 Acronyms 162 Note 162 11. Digital Home 163 11.1 Introduction to Home Automation 163 11.2 Evolution to Digital Home 165 11.3 Home Automation: Control Network 170 11.4 Digital Home Networks 179 Acronyms 182 Notes 183 12. Videoconference and Telework 185 12.1 Customer Need: Teletransport 185 12.2 Videoconference 186 12.3 Telework 195 Acronyms 200 Notes 201 Index 205 Foreword If there had been any doubt that our global society has moved into a digital century, it has surely been dispelled by the dramatic adoption of mobile phones now esti­ mated to reach 4.6 billion subscribers, some of whom having more than one mobile. As to the so-called “smartphones,” there are estimated to be about 3 billion subscrib­ ers to these devices. These numbers will almost certainly increase as the “Internet of Things” evolves and the associated devices begin to populate residential and enter­ prise operations at paces comparable to the mobile phone influx of the past decade. Already very dependent on devices linked to the Internet and the services they offer or rely upon, it seems predictable that our dependency will grow and that our vulner­ ability to buggy software or malware will increase. There are many implications of this observation. The first is that we will need to prepare for a fragile future and that we need the makers of these devices and their software to be extremely thoughtful and careful to avoid major vulnerabilities. Second, we will need to update software in these myriad devices in a way that is secure and ensures with high probability that a valid update has been recorded. Third, we will be faced with configuring increasing numbers of devices and we need to make this process as simple, painless, and reliable as possible, especially as they change hands with people moving from place to place and inheriting or taking their many devices with them. Fourth, we will need to stay highly cognizant of the poten­ tial hazards to privacy that these programmable devices pose. Even simple informa­ tion such as room temperature taken every few minutes might be useful for ascertaining whether people are present and where they are. At the least, a record of temperatures could reveal how many family members there are, what rooms they prefer, and when they might be away. Many other scenarios can be fashioned that highlight these risks and remind us that not all technology results in positive outcomes. At the same time, we would be remiss not to speculate about the rich potential of artificial intelligence to smooth our interactions with a world populated with soft­ ware-filled cyber-physical systems. Incredible advances have been made in the past decade with natural language processing, text to speech production, speech recognition, logical reasoning about the real world, image and sensor understanding, robotics, and navigation. Artificially intelligent assistants are becoming more com­ mon and more useful as they gain ability to communicate with each other, with com­ puter-based systems and with the humans they serve. It seems reasonable to anticipate that the human thirst for knowledge itself will be augmented increasingly by the use of pattern-recognizing software systems to the point that some aspects of discovery may be attributed to artificially intelligent xi xii Foreword programs that will sift vast amounts of data looking for correlations and anomalies adding to the sum of human knowledge. Whatever else the twenty-first century may bring, it will be a time of rapid innovation and discovery, rivaling centuries of the past and casting light into the future. Finally, one cannot help but be concerned about the preservation of the vast quantities of digital information that will be produced in the decades ahead. Digital media have uncertain lifetimes and the interpretation of binary information often requires specific, executable software to render the meaning of any preserved bits.

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