Classroom Companion: Business


   Toward Next-Generation Network


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Introduction to Digital Economics

3.4 
 Toward Next-Generation Network
We have just seen that the fixed telephone network is about to disappear and be 
replaced by “all-IP” high-speed core and broadband access networks supporting a 
mixture of simultaneous voice, messaging, video, broadcast, and data services. 
This network is then the first network satisfying the definition of the next- generation 
network (NGN). In 2004, Study Group 13 of ITU-T defined NGN as follows (The 
quote paragraph is found on the link: 
7
https://www. itu. int/ITU- T/studygroups/
com13/ngn2004/working_definition. html
):
“A next-generation network (NGN) is a packet-based network which can pro-
vide services including Telecommunication Services and is able to make use of 
multiple broadband, Quality of Service-enabled transport technologies and in 
which service-related functions are independent from underlying transport-related 
technologies. It offers unrestricted access by users to different service providers. It 
supports generalized mobility which will allow consistent and ubiquitous provision 
of services to users.”
The evolution toward the NGN has taken a long time but has recently gained 
speed mainly because of the rapid rollout of 4G networks in many countries. The 
reasons for the slow start were both technological and commercial. Technological 
 
Chapter 3 ·
Convergence of Technologies and Services


41
3
reasons were, for example, related to low data rates in mobile systems, insufficient 
capacity in transport networks resulting in large fluctuations in the delay of data 
packets making them unsuitable for broadband streaming services, slow computer 
hardware, and simply because it takes time to develop and implement new tech-
nologies. The most important commercial reason is that it is expensive to build a 
new network.
One approach toward new network configurations is the use of low Earth orbit 
satellites. Some of these projects are reviewed in the case study.

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