Thursday, July 22, 2010

SONG Jun-de: fixed integration will create new value space

From the global telecom industry trends, integration has become a mainstream trend, including the integration of fixed and mobile networks, communication networks and the Internet, extensive network integration, and integration of next-generation network industries. To face difficulties of this integration brings opportunities fixed.

Some scholars believe that, although the off-net rate has been fixed for everyone concerned, but the present situation, the voice is still the main profit operators, with the development of next generation networks, voice services such as integration of these, then the solid network will regain the status. Integration in the creation of new value, but also brought new markets. In the triple play is growing situation, the fixed network will have to face the future? "Triple play" is fixed can revitalize? This reporter interviewed a Beijing University of Posts and PhD supervisor Professor Song Junde.

Reporter: "triple play" is the trend, after the industry put forward the integration of fixed and mobile phones, the recent large-scale domestic IPTV test and further validate "triple play" trend. Well, IPTV's "triple play" process, will usher in what you think fixed the opportunities and challenges?

SONG Jun-de: The current popular concern the integration of fixed and mobile networks, that FMC is a general trend. Present by the BT (British Telecom) lead in many European countries have achieved this integration. Integration of services for fixed-line operator is a good thing, it can not guarantee that the loss of fixed-line users. Most users in the office and home time or more, the movement time was relatively small. In the case of non-integration, fear not find people who need to contact the user dials the phone more. Statistics show that 1 / 3 of people still like to dial in indoor mobile phone, because it is convenient, do not remember the office phone, home phone and so on, save a lot of trouble. If you fixed everything compatible, you can include all the services one. Both indoors and outdoors can seamlessly switch, then most would go to the indoor fixed-line business.

But now there is a major problem in China, the two main fixed-line operator does not move the license, which is the integration of fixed network operators will bring some resistance, so it should be released as soon as 3G and mobile licenses. Because, from a global perspective, a separate fixed network operators or mobile operators are not conducive to their development. But China's current integration of fixed and mobile terminals resistance is relatively large, because this involves the interests of all operators. In particular, mobile operators will be severely affected.

Integration between the two, the mobile end user will definitely turn a lot of calls to fixed network operators pay a fixed portion of the cost. After all, cheaper to fixed networks, call quality is better. Therefore, mobile operators and fixed network operators is difficult to take the initiative to integrate, this will affect their income.

Triple Play is relatively harder. Currently there are some good sign, in the IPTV, some cities have begun pilot. Central also has "triple play" into the "Eleventh Five-Year Plan" was. Telecommunications and broadcasting in some areas to establish win-win situation, IPTV can be carried out; in some places both in their own ways of resistance will be greater integration. Therefore, at present carried out only in the local network convergence, not to form a national follow-up. Fixed as soon as possible to get mobile licenses in order to truly achieve "triple play."

Reporter: We note that fixed-line operators, business innovation in recent years continuously, such as PHS appeared well-informed through functional integration of cordless operation; fit three networks and digital home entertainment IPTV; fixed terminal is moving in the evolution of an integrated information service platform. How do you fixed in the field of fusion phenomena, it can recycling the new value of fixed-line space?

SONG Jun-de: This is a consolidation and development of fixed-line opportunity. Fixed network operators in the PHS, fixed terminal has begun to prepare for future large fusion. Can be used as a fixed phone at home, go and switch to a fixed telephone can still use the PHS. This technology, terminal integration is inevitable. But the current activities in the room is quite small, inter-provincial roaming, or impossible. Fixed network operators in the network, the terminal does not exist any technical problems, the key is subject to constraints such as operating license. FMC is mainly in the terminal and the evolution of applications, this is a future trend. The integration of business is mainly helpful to users, such as user communication cost savings and reduction of radiation. If a number can solve all the communications and entertainment, which for users is a great convenience. This user definitely needs more fixed. Retain users, other value-added services operator and will have a market space. We say anytime, anywhere in the solid line can be achieved, including the IPTV, fixed line phone on the 1st pass, broadband, and other value-added services such as provision of SP, which is the value of future new space.

Reporter: The Next Generation Network Integration of all the industrial resources, users are more and more viscous, a variety of business continues to pack them, "has become a digital Swiss Army knife." Do you think fixed-line communications in the future will play what role?

SONG Jun-de: Around the world, in today's fast-growing mobile communications, fixed line really been no small impact. Fixed network has been weakened in many areas, or replaced, as the telegraph flower business, fixed network operators are no longer in operation. By the same token, with the evolution of IP technology, and many businesses also will be replaced. But with the emergence of home networking, the formation of a new industry value chain, fixed here to find their own unique advantages: wide coverage of the network resources, loyal customer base, high-quality communications, high-impact brands, low standard rates. Particularly in broadband, fiber optic cable bandwidth limitations on small, mobile communications network which is also insurmountable. And the future of IPTV, VOIP and other voice, video and other multi-pack will increase the fixed-line business value. Therefore, fixed in the future will continue to be the field of communications and information will continue to play an important role. It still is a personal communication, regardless of location, regardless of time of a major part of the integration network. National situation is different, the proportion of fixed network will be a corresponding difference in bandwidth, stability, security, price, and other areas is bound to make even better fixed.

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