Benefits of IP Architecture Layering

The convergence of telecom services using IP provided for technical unbundling of facility network capacity from the services supplied over those facilities.

Four Layer Architecture

Todays IP Telecommuncations Network consists of 4 Layers:

1. Layer 1 - Network Infrastructure Facilities: cables, wires,microwave towers,mobile cells, satellites, etc. that provide the base connectivity.
2. Layer 2 - Network Management: standards and protocols that
   manage the routing and technical quality of network services.
3. Layer 3 - Provisioning of Communication Services - provides access to basic, value add and information services.
4. Layer 4 - Information Services: all content accessible on an IP network .

This architectural restructuring from vertical to horizontal, is reflecting in the service offerings. Carriers are now able to offer premium services in each of the four layers; providing for distinct submarkets for network infrastructure capacity, network management, communication services and information services.

Submarket Competition

The downside is that the barrier to entry for players to enter purely at one level is significantly reduced.

Carriers, now offering IP services previously only offered by Internet Service Providers [ISP's] and broadcasters alike, can now offer complete comms packages in reponse to niche submarket offerings.

Regulatory Challenges

The marketing challenge is to offer this complete suite - and still meet the now outdated industry regulations, not structured for this multi-faceted approach. ICT policymakers and regulators will find it difficult to restructure these agreements without bias to one particular industry, whilst adequately addressing new public service and public interest opportunities.

From a technological perspecitive IP has been the key driver of this market development, however convergence has also occured a services, market and regulatory levels.

Related Reading

The Five Faces of Convergence

Telecom Convergence Challenges

Next: Introduction To Telecom Signaling

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