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Issue 13: September 2004
Previous
editions
In this edition:
The Portable Internet
(www.itu.int/portableinternet)
1. The
Portable Internet: A disruptive technology?
2. Market
opportunities
3. Policy
and Regulatory Aspects
4. A
tool for bridging the digital divide
5.
Science
Fiction or Fact?
6. Societal implications of a portable world
7. Related links
"The
Portable
Internet" is the sixth in the series of “ ITU Internet Reports"
originally launched in 1997. This
new report examines the emergence of high-speed wireless Internet access
technologies
in combination with the proliferation of portable access devices.
It covers the
following areas: current and future technologies, market trends, policy and regulatory aspects,
the digital divide,
and social factors. The report
also contains a statistical annex providing
the latest ICT data for
some 206 economies worldwide. A summary of the report, and data
samples, are available for free download and information on how to purchase the electronic or hard copy of the report
may be found on The
Portable
Internet website.
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 1. The
Portable Internet: A disruptive technology?
Telecommunications
have traditionally been characterized by long network planning cycles
and high fixed investment costs. This makes the industry particularly
vulnerable to disruptive or “subversive” technologies. Unlike the
slow process of improving on a particular product or service through
incremental change, so called disruptive technologies undermine the
fundamental economics of product development and threaten to tear up the
page and start again. Technologies described as the “portable Internet”
may just fall into this category.
Users accessing the Internet
often face a trade-off between higher connection speeds and levels
of mobility. Fixed-line technologies generally offer
higher speeds while IMT-2000 mobile phone networks offer greater
mobility. Wireless Local Area Network (WLAN) technologies fall in
between, offering users limited mobility with only a small
decrease in overall speeds. However, there is a wide gap between
the amount of mobility offered by 3G and that of WLAN and many see
this as the prime market segment for new portable Internet
technologies, especially in developing countries.
The portable Internet, comprises a wide range of technologies, each filling
the need for a specific type of user access. These technologies
can be categorized according to the geographical reach of their
radio signals. Short-range technologies, such as
Bluetooth and RFID, allow low-power connectivity within a range
of 30 metres. Medium-range technologies can communicate at least
150 metres from a hotspot (e.g. Wi-Fi, or IEEE 802.11b) and up to
several kilometres, depending on environmental and regulatory
factors. Finally, long-range technologies such as WiMAX (IEEE
802.16) and IMT-2000 (3G) have ranges that extend up to 50 kilometres
from a base station, and can extend to near-nationwide coverage
when offered as a networked service. Solutions based on high- or low-altitude platform stations
also fit in this category, (HAPS/LAPS) which can serve a whole town, and satellite that can
serve a whole region.
Figure 1: What is the portable Internet?
Technologies
and market opportunity
2.
Market
opportunities
There are potential uses and markets for a "
portable internet" in both developed as well as developing markets-
two types of markets which would have vastly differing uses and needs
for these technologies.
In developed country markets, the
main market opportunity is both in complementary and substitutable
services, and that this market is likely to grow in rhythm with
replacement cycle for handsets and other portable devices. As far as
substitution goes, it is likely to be at the level of service
revenue (i.e., subscribers choosing to route their Internet traffic over
a Wi-Fi connection rather than over and IMT-2000 network) as much as at
the level of the device itself. But the precise way in which this works out will depend on
the extent to which the handset manufacturers jump on the
portable internet bandwagon and allow
interworking between high-speed mobile networks and other portable
Internet technologies, and whether cellular service providers also
encourage this.
Meanwhile in developing country markets, the story
is a different one. The
main opportunity is, rolling out new services into untapped or poorly
served areas where the
existing fixed-line network is poorly developed. Where the 2G mobile
network has not yet been transitioned to higher speeds, or where
higher-speed IMT-2000 services have not yet been licensed. In
particular, a portable internet type technology like WiMAX may hold the most promise
in delivering access to developing economies and to rural areas of
developed ones.
Figure 2: Top 15
broadband economies worldwide
As
measured by penetration rate per 100 inhabitants, 2003, and broken
down by technology
Figure 3: 3G market shares
Division,
by country, of 3G subscribers worldwide at 30 June 2004, broken down
by technology
 
3. Policy
and Regulatory Aspects
From a policy and regulatory perspective, the
provision of portable Internet services raises a diverse range of
questions. The concept is one which straddles a diverse range of issues,
reflecting convergence services and technologies. One key question raised is that of spectrum management. In recent years, technological
innovation in the field of communications has placed increasing demands
on radio spectrum. In the area of telecommunications, new services have
been launched, such as IMT-2000 wireless broadband Internet access, and
digital broadcasting which, has ushered in a new range of services such
as high definition television. Meanwhile, existing demands in the form
of traditional broadcasting, mobile voice services, public safety
services and defence have also grown, placing an increased strain on the
finite amount of radio spectrum available.
Looking towards the future, the development and distribution of new
wireless products and services will continue to accelerate, driven by
consumer demand for ubiquitous access to communications and information.
Together with an increased demand for radio spectrum, boundaries between
new services will also increasingly blur, departing from established
industry categorizations and rigid regulatory definitions. This will
inevitably make radio spectrum management more difficult and less
predictable.
Box 1: “Unified Access
Licensing” and “Unified Licensing”
Review of licensing
regime in India
Following technological and
market developments reflecting the increasing overlap between
telecommunications services provided over fixed and wireless means,
the Telecommunications Regulatory Authority of India (TRAI) felt that
there was a need to review its licensing regime. Accordingly, a
Consultation Paper on Unified Access Licensing for basic and cellular
services was issued on 16 July 2003 by the authority. On 27 October
2003, TRAI produced a blueprint for a unified access licensing (UAL)
regime that provided for a single licence category for fixed-line and
cellular operators. On 11 November 2003, the Government sanctioned
this plan. As a result, both Basic and Cellular Mobile service
providers were given the freedom to offer basic and/or cellular mobile
services using any technology.
Although the UAL regime is only
currently limited to access networks, TRAI’s intention is to extend
the UAL regime into a unified licensing regime for all services
including services such as national long distance, international long
distance, and Internet access. As envisaged, the unified licensing
regime would allow for the automatic licensing or authorisation of any
service provider subject to notification and compliance with published
regulatory guidelines. Spectrum charges would be determined by a
different mechanism.
Preliminary consultation papers
on the unified licensing regime were issued on 15 November 2003 and 13
March 2003 in order to obtain further input. Based on the comments
received, TRAI released their draft recommendations on a unified
licensing regime on 6 August 2004.
4.
A tool for bridging the digital divide
In
recent years, as information and communication technologies (ICT) have
become the backbone of the global information economy and given birth to
the rise of the information society, more attention has been focused on the
gap known as the “digital divide” in access to ICTs, in particular between
developed and developing countries.
Can portable internet technologies help bridge this divide?
When
it comes to ICT development, the well-documented problem of
the absence of infrastructure—both fixed and wireless—is often the
first issue to attract attention. With the explosion of mobile
technologies worldwide, there is much hope for the faster and cheaper
extension of access to ICTs. Early benefits of wireless technologies for
the developing world are already being seen, for instance, in the health
sector.
Box
2:
Information technologies for bridging the health divide
Wireless telemedicine
initiative in India
In India the
Wireless Local Loop technology, CorDect provides
simultaneous high-quality voice and data connectivity in both urban
and rural areas. It has the potential to connect 85 per cent of the
villages of India with coverage radius of 25 km. Radio exchange and
base stations are deployed in towns (where fibre is present) and a
subscriber unit is deployed in the village, providing a telephone
connection and an Internet connection at 35/70 kbit/s.
The aim of
this system is to provide healthcare services to people living in
rural areas, where it is difficult to reach a doctor. In
the example of sixty-year old Palaniammal, a web camera set in a
special kiosk was used to photograph her eyes, and the photo sent
electronically for diagnosis. The process was facilitated through the
use of a real-time video conferencing system and the exchange of
on-screen instant messages. Despite the low quality resolution, a
doctor based at a distant healthcare centre was able to diagnose that
she was suffering from a cataract. The photos were also e-mailed to
the Aravind Eye Care Hospital in Madurai for a second opinion. The
doctor then sent back instructions and Palaniammal’s vision was
restored in few days. This example shows how wireless technologies can
help reduce the social disadvantages suffered by rural communities at
a relatively low cost.
5.
Science Fiction or Fact?
Human
beings are more often connected to a network than not, through personal
computers at work or home, and through mobile phones. But what if not
only people, but all things were also connected and contactable? Far
from science fiction, the day is fast approaching when every consumer
product (from cars to razors) will be tracked using tiny radio
transmitters, or tagged with embedded hyperlinks and powered by portable
Internet technologies so that they can be tracked at any time and from
any device. Such “smart
labels” will ultimately transform the way these products are
distributed, sold and purchased, creating what some have aptly named an
“Internet of things”.
Tagged and ready-to-go
RFID is a good example of
this "Internet of things". RFID
tags are essentially tiny microchips, some
only 1/3 of a millimetre in diameter, that act as transponders
(transmitters/responders), continuously waiting for radio signals to be
sent by transceivers, or specially-designed RFID readers. They have the
ability to track the location of a particular tagged item and can be
accessed from a whole range of portable devices. RFID is already being
used extensively in a number of countries worldwide for a number of
diverse applications and it is likely that RFID will soon replace the familiar bar code in
the retail world.
In Tokyo, RFID tags are being used already for uses as
diverse as tracking and pricing plates of sushi, as well as retail
shopping. Last year, NTTDoCoMo began trilals of its "R-click"
RFID service, a service which delivers location specific information to
shoppers as they walk around a metropolitan shopping complex in Roppongi
Hills, an area of Tokyo. In the United States, the Department of
Transportation's Federal Highway Administration is currently exploring
the use of RFID for roadways. The Administration plans to use RFID as a
way to warn drivers of possible dangers, e.g. imminent intersection
collisions or vehicle rollovers.
Box 3: Clubbers get “chipped”
with tags in Barcelona
RFID
has its privileges, if you're willing to be injected
The
Baja Beach Club in Barcelona recently introduced RFID chips for their
VIP patrons. An RFID implant (VeriChipTM), injected via
syringe, allows club-goers to breeze past readers that recognize them
and their VIP status. The
chip contains information about access permissions, thereby opening
exclusive areas of the club. The chip also stores information
regarding credit balances - the “chipped” VIPs can therefore
purchase drinks and food by simply waving their hand. About the size
of a grain of rice, each Verichip RFID device contains a unique
verification number, which can be used to access a database with
personal information.
VeriChip
works in the following manner. Once implanted just under the skin
(typically in the upper arm), the chip can be scanned when necessary
with a VerichipTM
RFID scanner. A small amount of radio frequency energy passes from the
scanner, energizing the dormant chip, which then emits a radio
frequency signal. The signal transmits the individual’s unique
personal verification ID number and provides instant access to the
Global Subscriber Registry. This is done via secure,
password-protected Internet access. Once they are confirmed in the
registry, VIP benefits are granted.
VerichipTM
Process
6. Societal
implications of a portable world
What kind of implications do these new technologies hold for
individuals and society as a whole? Technology does not exist in a vacuum. The
ubiquity of access to information and communication has an undeniable
and profound effect on human existence.
For instance, it has been remarked by many that the expanded or enhanced social
networks afforded by portable cellular phones has created a new sense of
identity for various groups of people, especially teenagers. For teens
in particular, portable devices are an integral part of their daily
lives and an extension of their personal identity as they
customize them to suit their needs. They are more comfortable
with using the mobile phone and playing with digital gadgets than their
older counterparts. The mobile phone is
a status symbol for young people who are grappling with the forces of
peer pressure and conformity but in some cases usage threatens to get
out of control.
Box 4: Too mobile, too
much, too often...
Mobile
phones - the new teen
addiction
?
The number of young people using mobile
telephones has risen dramatically during the past decade, and is
expected to further increase at a rapid rate. The use of mobile phones
by young people is typically higher and more varied than adults. The
youth of today believe in the anytime, anyplace, anywhere mobile
culture. For instance, they are seen constantly checking for, and
writing new text messages. Indeed, mobile phones are more than just a
fad for teenagers, and some argue that there is a tendency for
“technology addiction” in this context. Some psychiatrists have
gone so far as to say that addiction to mobile phones could be a form
of obsessive-compulsive disorder among the young, which may become one
of the biggest non-drug addictions of the 21st century.
Mobile phone addiction can have the effect
of isolating users (i.e. from face-to-face contact) and has the
potential to ruin them (or rather their parents) financially. Symptoms
include: becoming disturbed when unable to communicate uninterrupted
with their mobile phone and irritable if away from it for any period
of time.
Mobile phone usage among the young not only
increases the opportunity to bond with friends and to organize a
social life on the move, it also provides a symbol for acceptance.
This is important to a teenager’s individuality and confidence.
Therefore, teenagers that are struggling with their identity and
social status are particularly vulnerable to this addiction syndrome.
7. Related
links
 ITU
Internet Report 2004 "The Portable Internet" (September 2004)
ITU/KADO
Digital Bridges Symposium (September 2004)
ITU/MIC
Workshop and Symposium on Shaping the Future Mobile Information Society (March 2004)
ITU
Workshop on Radio-Spectrum Management for a Converging World (February
2004)
ITU
Internet Reports 2003 "'Birth of Broadband" (September 2003)
Strategy
and Policy Unit: Publications
Strategy
and Policy Unit: Newslog  
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further information on Strategy
and Policy
Unit Monthly News Flash, please
contact: ITU Strategy and Policy Unit, International
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(Switzerland). Fax: +41 22 730 6453. E-mail: spumail@itu.int
. Website: www.itu.int/spu/
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