1.4.1 Next Generation Core Networks (NGCN)

Figure 1 illustrates the difference between today’s telecom networks and tomorrow’s NGN platforms. Today, the PSTN, mobile networks, Cable TV networks and Wireless networks use several dedicated metro and core networks.

Figure 1: Today's Networks and Next Generation Networks 

Source: Ofcom

In the NGN platform all of these different access technologies share the same IP core network. The main arguments for transition to the NGN architecture are:

• It is not efficient to maintain several core networks for different access networks. Substantial cost savings can be achieved due to the economy of scope inherent in a single converged network. BT predicts[1] a reduction of costs by £1 billion per annum by 2008/2009 as a consequence of migrating to NGN.

• According to BT, NGN enables improved time to market for new services and improves customer experience.
• NGN enables the continued offering of services in the legacy access networks. For example, the analogue PSTN access line/service does not need to be changed in transition to NGN. The main changes here are the efficiencies gained in the core network, especially when one operator owns and operates several parallel core networks. The latter is the case for a majority of incumbent operators. So the operator on the one hand utilizes the backbone efficiency gains and on the other hand continues to make profit from the investments in the access networks.
• NGN enables the provision of value added innovative services using the possibility that one core network is connected to and manages different access networks. For example, a SMS can be sent to a mobile subscriber to inform the users if there are problems with the operation of DSL.

These arguments show that the implementation of NGN is a radical change in the network architecture of incumbent telecom operators. This raises the question of the role of regulation in this process: Should the regulators get involved in the practical implementation of the NGN? The answer to this question is no, as it contradicts the new regulatory doctrine of telecom development, where the decision of technological changes is taken on the market and by the market players/industry. However, the regulator must make this clear in setting the constraints within which the industry should design their networks.

The role of regulation regarding NGN is on the one hand to make sure that effective competition can take place in the NGN era, and on the other hand to make sure that the consumers and the level of services they receive are not affected in a negative way in this transition.

ENDNOTES