Latest Developments in Technological Convergence in the IT Sector

28 March, 2007

Cynthia ChynDeputy General Director

Market Intelligence CenterInstitute for Information Industry

The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu

email: chyn@micmail.iii.org.twURL: mic.iii.org.tw/english

2

Outline

• Digital Convergence

• Home Convergence

• Convergence On-the-Go

• Concluding Remarks

Digital Convergence

4

The Driver - Application Convergence

Source: MIC, March 2007

5

TomorrowTomorrowHorizontal Network (multi-services)Horizontal Network (multi-services)

TodayTodayVertical Networks (single service)Vertical Networks (single service)

The Enabler – Heterogeneous Networks Convergence

Mob

ile

Net

wor

kM

obil

e N

etw

ork

Ter

rest

rial

/Rad

io/S

atel

lite

Ter

rest

rial

/Rad

io/S

atel

lite

Fix

ed N

etw

ork

Fix

ed N

etw

ork

WiM

AX

/WL

AN

WiM

AX

/WL

AN

ContentContent

Services

IP-based ServiceEnvironment

Service 1Service 1 Service 2Service 2 Service 3Service 3 Service 4Service 4

FixedNetwork

MobileNetwork WLAN/WiMAX

BroadcastingNetwork

Data 1Data 1 Data 3Data 3Data 2Data 2 Data 4Data 4

Source: MIC, March 2007

6

Diversified Devices and Business Models Coping with Opportunities

Kiosk

Data Searching Service

Data Sharing Service

IMS/MSN

VoIP

SMS/MMS

LBS

VOD Service

Multi Room Service

DVR, PVR Service

Online Gaming

Broadcasting Fixed Network MobileWiMAX/WLAN

Video、Movies Download

Music Download

Communication Entertainment

Audio Video Game Information

Source: MIC, March 2007

Home Convergence

8

Starry Starry Home

TV

Media

CenterPC

Monitor

Home Networks DMA

TV

Media Center

PC

Monitor

Xbox 360

DVD

PVR

STBHome Networks

Star ModelCentre Model

Media CenterPC

Family RoomDen

Master Bedroom

Media Center Extender (MCX)

HDTV

HDTV

Kid’s Room

Media Center PC

Media Center ExtenderGame

Voice

Longhorn PCDMA

Source: MIC, March 2007

9

Console no longer only about games

Game Console

GameGame

TVTV

MovieMovie

PhotoPhoto

MusicMusicInternetInternet

TV

Xbox 360

DVD HDDMCE Extender

Monitor

Media CenterPC

TV

PS3BD HDD

Cell

CellHDD Recorder

Cell

10

Analog Digital

Set Top Box Towards Multi-tasking

TV Viewing

Storing/Time-Shifting/

Push VOD

Home MediaCenter

i-TV

SDSD HDHD Full-HDFull-HD

Transmission and

ReceptionHome

GatewayModem Wireless

ModemVoIP Terminal Ada

pter

Product Specifications and Functions

Single Tuner Single Tuner Dual Tuners Multiple Tuners

Middleware Middleware Middleware

Hard Disk Driver Hard Disk Driver

DVD R/W DVD R/W

Com. Ports

Support AV Share Network

Digitalization and Multi-purposing

Applications

and Services

Source: MIC, March 2007

11

TVPC/EPCTV+STB-Photo

-Music

-email

-EPG

-Web TV

-TV

-PVR

-TV

-PVR

-EPG

-i-TV

-Music

-Photo

IP Based-ServicesEnvironment

Data Voice Video

STB

IntegrateEngage in

IP Technology Blurs the Boundaries

Source: MIC, March 2007

Convergence On-the-Go

13

Portable Video Player

Portable Storage - OTG

Portable Audio Player

All You Can Entertain - Portable Media Player

Music Play Photo Play FM Radio Audio Recording PC Connectivity

1.5~2.5” TFT LCD 2~8GB Flash 20~60 GB HDD

3~5” TFT LCD 30~120 GB HDD

Music Play Video Play Photo Play Play Games FM Radio Audio Recording PDA Function PC Connectivity

4~7” TFT LCD 30~120 GB HDD

Music Play Video Play Photo Play Play Games FM Radio Audio Recording PDA Function PC Connectivity Support Memory Card

Digital Terrestrial TV Receiving AV out for larger display TV Recording EPG & Teletext Remote Control GPS

1.5~4” TFT LCD or None display 30~120 GB HDD

PC Connectivity Support Memory Card

Portable Media Center

Source: MIC, March 2007

14

PND = PDA + GPS + Security + PMP

Navigation+MP3

Security

Personal Navigation

Devices

Personal Entertainment

Navigation+PMPAudio

Navigation+Game

Nokia 330

Mio H610

Integrated Communications

Products

Personal Video Players

Navigatiom+Camera

Navman Pix

Navigation+Speed alarm

GSM/GPRS

Navigation+Safety Camera

Video

Navigation+XM Satellite Radio

StreetPilot 2820

tomtom GO 910

Bluetooth WiFi VoIP

Networking

Garmin nuvi 660 Nokia 330

Mio A701

Personal Security

TelematicsCar Security

Traffic Reports

Golf Applications

tomtom GO 910

Source: MIC, March 2007

15

Computing On-the-Go - More Than Productivity

Mobile Communication

Mobile Computing

NB Vendor NB Model

OperatorTech. Status

Regio

n

Dell Latitude Vodafone HSDPA 2H,2006 EU

Acer Travel Mate Vodafone HSDPA 1H, 2006 EU

Fujitsu Siemens

LifeBook T-MobileVodafone

HSDPA 2H,2006 EU

HP NC6140 Verizon CDMA2 0001x EV-DO

1H, 2006 US

Lenovo ThinkpadT60,Z60t

Verizon CDMA2 0001x EV-DO

1H, 2006 US

DEll NA Cingular HSDPA 1H, 2006 US

Notebook PCs with 3G Functions

100Mbps

PAN WLAN

10m 100m 1Km

500Mbps

1Mbps

10Mbps

Bluetooth

802.11a

802.11g

802.11b

802.11n

2.5G

3G

3.5GDSDPA

WWAN

WIMAX

Developments of Wireless Technology

Source: MIC, March 2007

16

Mobile Handheld – A Dream Land

Mes

sag

ing

Text Message Multimedia Message

2GGSM/

cdmaOne

2.5GGPRS

2.75EDGE/

Cdma2000 1X

3GW-CDMA

Cdma2000 1x EV-DO

3.5G EvolutionHSPA

Melody

Location Base Service

Java Game

Image/Video Capture

Digital TV Broadcasting

Instant Message

Video Streaming

Mobile Commerce

Simple E-mail

Mu

ltim

edia

Web Browsing

Secured E-mail withAttachment

Multi-player Game

Push-to-mail

MP3 Melody MP3 Full-track

Video Conferencing Ser

vice

s

9.6 ~ 64 kbps 64 ~ 144 kbps 384kbps ~ >2M kbpsBusiness Solutions

Source: MIC, March 2007

Concluding Remarks

18

Convergence Overwhelming

Source: MIC, March 2007

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Concluding Remarks

• The evolution of network architecture and the development of digital transmission technology have stimulated the widespread adoption of triple-play services that integrate voice, data and video, and have blurred the boundaries between audiovisual, communications and Internet services.

• Convergence is an issue not just about seizing market opportunity, but more about shifting and building competitive advantage at firm level, developing competitiveness at country level, and preparing for the next paradigm.

• Given the ongoing trend towards digital convergence, there is a need for a new product monitoring mechanism on a regular basis under the ITA, so as to establish a future-envisioning healthy global trading environment.

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Thank you for your attention.