New Communications Technologies : Applications for Development

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New communications technologies : applications for development

Simatupang, Iwan

1994

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

Downloaded on 25 Sep 2021 16:21:06 SGT ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library

New Communications Technologies: Applications For Development

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

Presented at

"COMMUNICATIONS, CONVERGENCE AND DEVELOPMENT

AMIC ANNUAL CONFERENCE PROGRAM

Bangkok, June 23-25, 1994 ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library

COIVIMUNICATIONS, CONVERGENCE AND DEVELOPMENT AMIC ANNUAL CONFERENCE PROGRAM

New Communication Technologies : Applications 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 environment, 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.

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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 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 Integrated 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 networks/terminals 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. Installations of optical fiber in the international and the national cable network 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 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.

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Figure 2a : Progress of Longhaul Experiments Figure 2b : Advances in Microelectronics on Optical Amplifier Submarine Systems Integrated Circuits

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 structures as a way of rationing network access, but instead 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 higher a bandwith could be implemented.

Satellite 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 present 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 better 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 satellite 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 terestrial systems but also for satellite system. Along with 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.)

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Table 1 : Selected Mobile Satellite Projects Name Major Investors Projected Main Services | Altitude Nbr. of System Launch i (miles) Satellites Type Teledesic Craig McCaw. Bill Gates ; 2001 ' ATM-based svcs. 400 840 Big LEO Iridium Motorola. BCE. DDI. Great: 1998 Voice, cata, 420 56 Big LEO Wall Industry. Rytheon. messaging,pacing, i Sprint, STET. United positioning Comm. Industries Project 21 Inmarsat 1998-2000 Voice, cata. ' * MEO (carrier consortium) messaging.paging. or GEO Globalstar Airtouch, Alcatel, Alenia 1998 Voice, data, 750 46 MEO Spazio, Dacom, Deutsche ! messagmg.paging, Deutche Aerospace, positioning Hyundai, Loral j Qualcomm, Vodafone. Odyssey TRW 1998 Voice, data, 10.000 ; 12 Big LEO messaging,paging, positioning

• Ellipsat Fairchild Space, Harris, 1997 ...... Elliptical 15 MEO Esrali Aircraft Industries. Voice, messaging. orbit Mobile Communications paging positionig Holdings. Westinghouse Aries Constellation Comm., 1997 Voice, messaging, 1,000 43 Big LEO Defense Systems paging, positionig Starsys Starnet 1995 Messaging, paging, 1,300 24 Little LEO positioning Orbocomm Orbital Sciences. 1995 Two-way 470 26 Little LEO Teleglobe Canada messaging, j positioning Undecided Source : CWI 25 April 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 inter active image-intensive applications and advanced multimedia 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 8-10 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).

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Table 2 : Internatio ia\, Digital Standards in Technical Comparison I Region North us, UK. CND Europe Japan Europe/ ! Europe Japan America Korea France, Asia HK, I ! S'pore, China Frequency 624-349 824-849 890-915 1710-1785 i 810-826 864-868 1830-19C: 1900 range (MHz) 869-694 869-894 935-960 1805-1655 | 940-956 i 1429-1513 Acce33 method TDMA'FOO CDMA TDMA/FDD TDMA/FDD ! TDMA/FDD TDMA TDD/TDMA TDD/TDMA Modulation pi/4 DQJPSK QPSK/ GMSK GMSK | pi/4 DQPSK Two —level GMSK pi/4 DQPSK DCPSK GFSK DQPSK Speech Codec VSELP. ADPCM, RPE-LTP, RPE-LTP, VSELP. ADPCM. i ADPCM, ADPCM. 7.25 kbos 8.55 kbps 13 kbps 13 kbps 5,7 kbps 32 kbos 1 32 kbps 32 kbps Carrier 30 1230 200 | 200 ' 25 100 I 1728 300 separation (kHz) 1 1 i ! Number of 332 10 ! 124 ; 374 j 1600 40 ; 10 40 Frequencies Output pwr. (W) 0.6,12.3.6 j 0-2-6.3 jI 2.5.8.20 !j 0.25, 1 j 0.3,0.8.2 j 0.01-0.10! 0.25 0.10 Data svc. (kbps) 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 standards being pursued are so great. Initial experiments have begun in PCS technologies using various frequency bands and with numerous related techniques. Research indicated that factors driving the PCS market include the demand for immediate access to people and inlormation: ubiquitous, low-cost, user-friendly communications; 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 influencing new services developments The best achievement in promoting telecom services in a country with different stages of development, basicly depends on three major taactor s (Figure 3) : a. -Technology; b. Market needs; c. Regulations.

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

Regulatory Technology relorm should deployment is designed introduces earning to introduce flexibilities in new business return for and/or new improved networks services h services

Market needs are addressed by The best achic'-'onient competing service prociders in promoting telecom, industry in a country

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Technology curently progressing tremendeously, it open up man}r new busi ness opportunities and new services applications. The continuous develop ment of technology as mentioned above provide many choice to fullfill the market needs. Corelation of services, technology and market is shown in chart 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 generic "Digital Cellular" name on the chart. This service requires in greater maturity 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 return 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

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Service Development Challenges a. Priorities The goals of development of telecommunication 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 telecommunications systems still are concentrated to the provision of telecommunications infrastructure and basic services such plain old telephone services (POTS). Driven by the country's economic growth, developing countries require a strong telecommunications infrastructure such that a "bottleneck' is not created.

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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 trends 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 LEGAL KEY OPERATORS FRAMEWORK -> 1980' 1986 I 1990 1991 1992 1993 1994 |LOCAL MONOPOLY 1. TELKOM • I PUBLIC DOM LONG MONOPOLY 1. TELKOM : B NETWORK 1 CIST. A INT'L COMPETITION 1. INDOSAT! 1. SATELINDO S MOBILE COMPETITION 1. RHP 1.TELEKO - 1. ELEKTRI 1. CPS s 1 SPECIAL CELLULAR 1 MINDO I NDO N. 2. SATELINDO E C NETWORK FIXED CELL. COMPETITION 1. RATELINDO R VSAT COMPETITION 1.CSM 1. SALIM 1.LTS ARTA 1. SKSP V GROUP 2. GARUDA i N c O VAS ! EH. S/F FAX. COMPETITION 1 3 AT AM- 1. INDOFAX 1 SISTE- L U N ETC INDO LINDO s B A 1. PERTAM.NA 4. PJKA i s PRIVATE NETWORKS ALLOWED 2. PN GAS 5. OIL COMPA." ..ES j 1 3. BANKS 6. TAXI COMP/= .VES '• c MULTIPLE PLAYERS : 1. ELEKTRINDO N. S. BERCA 9. CITACOM EQUIP CUSTOMER PREMISE COMPETITION 1. TELKOM 2. DIAN GRAHA E. 6. CENTRONIX 10. WASANA C MENT EQUIPMENT 3. DAENG BROS 7. BAKRIE E. 11. STIMECE. 4. HAR1FF DTE S. MAHAGUNAM. 12. NASIO SDN ETC

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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 variety of funding sources to pay for the development 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. It the US and Japan, where the telecommunications 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 their growth. In addition to these direct methods, there are indirect methods which are widely used in developing countries, such as : joint ventures, 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 profesionals person. People is the key succes element 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 times not available in the labour market. Therefore company has to make plan to traine its employs to be able provide good services.

Application For Development The 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. Promote and enchance business productivity The availability and ease of access of information that offer by communications networks provide links to informations sources or data base. By having good and acurate informations more business transaction could be carried out and open the possibility of a nation more competitive. b. Facilitating 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. Enchance Education System TV and Radio Broadcast have been used for distance leaving in several countries, help the expantion of leaving opportunity. Snaring the experiences and discussion by using teleconference amongs universites provides useful and up-to-date information.

8 ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library d. Produce Geography MAP By using Satellite 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. Eliminate Isolation of Rural Areas Satellite communication 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 Experience : 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 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 this seemed like the logical solution, the results 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 capacity and number of subscribers of Table 4b: Number of Subscrib ers of cellular mobile servic e in Indones ia (As per April 1993) Telephone Investor System Location Capacity Subscr. RHP jNMT-450 Jkt - Bdg 15,000 15,000 Year STKB Inti STKB C STKB N TOTAL RHP JNMT-450 Jkt - Bdg 15,000 859 EN IAMPS-800 Jkt - Bdg 25,000 16,351 1987 4.199 — 4,199 EN jAMPS-800 Medan 7,000 239 EN JAMPS-800 U. Pandang 2.500 60 1988 2.504 6.504 -- 9.008 CPS iAMPS-800 Surabaya 6.000 3,573 CPS IAMPS-800 Semarang 3,000 421 1989 3,303 I 9,620 — 12.923 Telekomindo JAMPS-800 Palembang 2,300 48 Telekomindo iAMPS-800 Denpasar 2,500 175 1990 6,096 12,000 — 18,096 Telekomindo |AMPS-800 Balikpapan 3,000 36 Telkom :TACS-450 Jakarta 2,150 1.541 1991 6,069 14,650 3,782 24,501 Telkom iTACS-450 Surabaya 500 126 j Telkom :TACS-450 Jakarta 3,000 2,988 1992 6,069 14.735 14,742 35,546 Telkom ITACS-450 Batam 500 78 TOTAL S7.450 41.495 1993* 5.199 15.900 21.187 42.286 Note : * up to August ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library 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 heated 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 ennance the quality of life, protect environment, and to create a knowledge-based society.