The past, present and future of ICT - Houlin Zhao, ITU Deputy Secretary-General, responds

In an exclusive interview prior to the ITU Telecom World event, Houlin Zhao, International Telecommunication Union (ITU) Deputy Secretary-General, provides an incisive insight.

Houlin Zhao, ITU Deputy Secretary-General

Swiss Style: What challenges does the ICT sector currently face? Houlin Zhao: The worldwide economic downturn has adversely affected all economic sectors, including ICTs. But our industry is very resilient. We already battled our own crisis at the beginning of the millennium and we learned some important lessons. Most ICT companies are therefore in good shape to weather the storm and should come through the crisis relatively unscathed.

It’s worth remembering that the ICT industry has created more jobs over the past five years than any other single industrial sector. ITU believes ICT can help power economic recovery across all sectors. That’s why this year’s ITU Telecom World event comes at such a critical time for the industry. The public and private sectors need to continue to invest in infrastructure and the roll-out of new cost-effective services, such as next-generation networks.

With the theme of Open Networks – Connected Minds, this year’s ITU Telecom World Exhibition and Forum will bring together key stakeholders from across the information and communication technology (ICT) sector, and from around the world. Comprising a cutting-edge Exhibition, Forum and unique business networking platform, the event will strive to address the shared global challenges that face the industry in today’s tough economic climate.

As well as prominent exhibitors and speakers from government and leading ICT developers and R&D organizations worldwide, ITU Telecom World 2009 will welcome UN Secretary-General Ban Ki-Moon, who will officially open the event on 5 October. The event will also feature a special Heads of State segment that will bring together world leaders who can help drive ICT investment and economic recovery.

In addition, for the first time ITU Telecom World incorporates special thematic elements designed to highlight the role and reach of technology in areas such as bridging the digital divide, climate change, e-Health, education and disaster relief. With its dual focus on business and development, the event combines investment opportunities and corporate social responsibility, and highlights best practices in driving socio-economic development through ICT.

SS: What changes are being brought about by convergence? HZ: With new technologies and platforms steadily eroding the links between infrastructure and applications, convergence is the most powerful driving force shaping today’s ICT environment.

After years of anticipation, converged services are finally here – and they are not just transforming the way we share information, they are rewriting the rules in a host of policy related areas:

• In terms of devices, more digital cameras will be sold in 2009 than all the analogue cameras ever manufactured – with the vast majority simply incorporated into mobile phones.
• In terms of networks, the provision of voice services is no longer limited to the copper-wire POTS network, but can also be transmitted over the Internet, along coaxial cable TV links, over the airwaves using a range of wireless technologies – and even over hybrid combinations of these networks.
• In terms of applications, bundling is now the rule: in mature markets, Internet and voice services are often now marketed together, sometimes with mobile and TV service as optional extras.

Converged next-generation networks (NGNs) encompass a range of technological platforms that will support the emerging wave of con-verged services. NGNs are the nucleus of ITU’s NGN Global Standards Initiative, the most ambitious and wide-ranging international standardization initiative ever undertaken. ITU’s Telecommunication Standardization Sector (ITU-T) has already approved over 60 NGN Recommendations and NGNs are now beginning to be deployed around the world.

At the same time, ITU’s Radio communication Sector is now forging ahead to define the next-generation mobile technologies that will put advanced wireless services in users’ pockets – accessible at any time and from virtually anywhere. Under the umbrella of “IMT-Advanced”, ITU-R Study Groups are working on new platforms and services that will support fast data access, unified messaging and broadband multi-media, and delivered in the form of exciting new interactive mobile services.

“ITU Telecom World 2009 will help inject new energy into the many development opportunities that still await governments and private industry alike, through a number of exciting Forum sessions that spotlight development issues such as regulatory reform, accessible pricing and extending broadband to under-served communities.”

Convergence also brings exciting new opportunities – and technical challenges – in the area of ICT accessibility. Empowering persons with disabilities to harness technology to help them achieve their potential is one of the central tenets of the United Nations Convention on Rights of Persons with Disabilities.

ITU has been active in this area for many years, and since 2008 has significantly stepped up efforts through the establishment of a Joint Coordination Activity on Accessibility and Human Factors (JCA-AHF) and the setting up of an Internet Governance Forum (IGF) Dynamic Coalition on Accessibility and Disability. A special Thematic Pavilion at this year’s ITU Telecom World – Empowering People with Disabilities through ICTs – will be dedicated to developments in this area.

SS: What are the priorities on ITU’s agenda, going forward? HZ: ITU believes ICTs can play a major role in helping to mitigate climate change. In their manufacture, use and disposal, ICTs currently contribute between 2–3% of CO2. But their potential benefits greatly outweigh their carbon overhead. ICTs can not only pro-vide “smart” solutions to reduce GHG (greenhouse gas) emissions, they can act as catalysts for increased efficiency, energy savings and emission reductions.

More effective use of ICTs could help contribute up to 15% in global emission reductions by 2020. For example, the deployment of NGNs can cut power consumption in large public networks by up to 40%.

At the same time, sensor-based networks based on RFID & telemetry can deliver key climate data via satellite and radio-based technologies, for both long-term monitoring and highly effective early warning systems to help avert or minimize natural disasters.

UN Secretary-General Ban Ki-moon invited ITU to address global issues such as climate change, saying: “Climate change is the moral challenge of our generation… ITU is one of the most important stakeholders in terms of climate change.” To that end, at ITU we are spearheading a number of initiatives in our technical sectors, from new low-power technical standards to globally agreed methodologies for measuring the impact of emissions.

This year’s ITU Telecom World event will feature a special Thematic Pavilion dedicated to Green@ICT. At the same time, our world-class Forum programme will feature a special stream on ICT and climate change: New ways forward for green ICT.

Also prominent on the ITU calendar is the issue of cybersecurity. In May 2007, we launched our Global Cybersecurity Agenda (GCA), a new global initiative framework for international cooperation aimed at enhancing confidence and security.

Building on this, ITU has recently fostered initiatives such as Child Online Protection (COP) and is currently collaborating with the Malaysian government and the state-of-the-art IMPACT facility in Kuala Lumpur to deliver up-to-date information about current cyber-threats around the world. The ITU Telecom World 2009 Forum will spotlight advances and issues in this critical area through a stream entitled Cybersecurity: Keeping our networks secure today, and for future generations.

Finally, we continue to focus our efforts on bridging the “digital divide”. I’m pleased to note that the total number of telephone subscribers in UN-designated Least Developed Countries as a whole has risen more than 20 fold since the year 2000, from around 5 million to well over 120 million.

We believe that bridging the digital divide and achieving the connectivity targets of the MDGs is critical to achieve the broader goals of development and promoting sustainable growth. That is why ITU recently took the bold strategy of advancing MDG connectivity targets from 2015 to 2012.

ITU Telecom World 2009 will help inject new energy into the many development opportunities that still await governments and private industry alike, through a number of exciting Forum sessions that spotlight development issues such as regulatory reform, accessible pricing and extending broadband to underserved communities.

China leads the world in telecom users

China’s telecommunications industry has seen revolutionary transformation and growth over the past three decades. Chinese Internet users number more than 150 million and the PRC expects to quickly pass the US in total numbers of connected citizens. The number of mobile and fixed-line telephone users soared from a mere 2 million in 1980 to a total of more than 800 million in 2007 – the country took the number one rank in the world in the number of telephones.

China has been the most successful developing nation in history for spreading telecommunications access at an unparalleled rapid pace.

The road to becoming number one

Chinese exhibitors and Forum speakers will play a key role at this year’s ITU Telecom World event. Amongst the range of high-level participants from China’s telecommunications industry – which includes China Mobile, China Unicom, Huawei Technologies, TDIA and ZTE Corporation – is Datang Telecom Technology and Industry Group, a Chinese telecommunication equipment vendor best known for its leading role in developing the Chinese TD-SCDMA 3G mobile telecommunications standard through its subsidiary Datang Mobile.

“It took us some thirty years to dramatically progress from no infrastructure to where we are today … "

A man with great insight as to the extraordinary evolution of the country’s telecommunications industry is Caiji Zhen, who has served as chairman and president of Datang since June 2006. He is responsible for the overall efforts to drive technology breakthroughs, industrialization and market promotion of 3G mobile communications in China.

Zhen’s background in the industry is impressive and his experience gives him a bird’s-eye view of the industry not only from a Chinese perspective but also from a global standpoint. From 1995 to June 2006, he successively worked as, among others, deputy chief engineer of the Directorate General of Telecommunication, Post and Telephone of China, president of the Telecommunications Research Institute of the Ministry of Information Industry and assistant chief engineer of China Mobile.

This extensive experience allows him to describe how China conducted its remarkable “telecommunications revolution”.

“Since the foundation of the People’s Republic in 1949,” Zhen explains, “I view the progression of our industry to have taken place in three main phases. In the 1950s, the telecommunications systems and facilities in China were outdated and rudimentary, consisting mainly of equipment imported from abroad. Those that did exist were largely limited to the eastern coastal cities, the Nanjing-Shanghai region, and a few interior cities. In the 1950s, existing facilities were repaired and considerable progress was made toward establishing a long-distance telephone wire network connecting Beijing to provincial-level capitals.”

The second phase of development in Zhen’s view, took place in the late 1970s. Zhen pointed out that, overall, China’s telecommunications services improved enormously during the 1980s. “As China opened its doors to the outside world, the attractiveness of the country as a low-cost mass producer within a huge internal market drew the attention of the telecom industry. It was a time when a number of global players undertook agreements with Chinese industrial companies, for the manufacture of telecom equipment.”

An interesting example of such an agreement was the creation a joint venture established by Nanjing Panda Electronics Company and Ericsson of Sweden to produce communication system products including the design, production, sales and installation of GSM/CDMA digital mobile communication system and switches. It was considered to be the first Sino-foreign joint venture licensed to access to digital mobile communication system.

“This was a transformational period,” says Zhen, who is also a professor of engineering and holds a doctorate degree, “when managerial competence and production processes were better understood and assimilated by our people. Our continuous collaboration with foreign companies also allowed us to review certain policies that were in place at the time and that hindered progression of telecom usage, such as a US$ 300 landline activation fee, which was consequently discontinued. The pace of telecommunications growth and technology upgrading increased even more rapidly after 1990, especially as fibre-optics systems and digital technology were installed.”

Caiji Zhen’s third phase of development of the Chinese telecom industry appeared in the late 1990s and early 2000s when foreign investment in the country’s telecommunications sector further encouraged growth. Datang, the conglomerate he heads, was influential during this period. It is during this time that local research and development finds its roots.

“Datang was founded in September 1998 by the China Academy of Telecommunication Technology,” Zhen explains, “and in the early part of the 21^st century we successfully launched the mainland’s first manufacturing company for third-generation mobile-phone equipment, using indigenous 3G technology to make real products. It was one of the most exciting times in our company’s history. As local R&D and technology took off, so did China become the world leader in the early 21^st century in terms of number of cell phone subscribers.”

More to come

Looking forward, Caiji Zhen comments on the future of the telecom industry in his country: “It took us some thirty years to dramatically progress from no infrastructure to where we are today. I strongly believe that we are already in phase four of our development, where innovation will replace the low-cost attractiveness of China. Although, for example, Datang’s other areas of business include high-capacity digital switching, optical networking, data communication and digital microwave communication equipment and software and system integration services; however, revenue from these sectors is far outweighed by the company’s spending on TD-SCDMA research and product development. This will put us, along with our other colleagues, in the forefront of innovative new products and services. As with the rest of our economy, we will probably see our industry evolve from global manufacturer to worldwide creator of groundbreaking technology!”

Not bad for a country that shows an increase in its mobile subscribers of some 4.78 million per month – a level unmatched anywhere else.

]]> http://www.swissstyle.com/datang/feed 0 http://www.swissstyle.com/telecom-is-dead http://www.swissstyle.com/telecom-is-dead#comments Sun, 01 Nov 2009 03:44:39 +0000 Editor http://www.swissstyle.com/test/?p=325

A call for a new business model

Ken Zita President, Network Dynamics Associates

When Zarathustra descended from Silvaplana, crazy ideas in his head, he had some big news. When the world’s telecoms’ elite descend on Geneva this month, seeking inspiration not in the mountains but at Palexpo, they may face a similar epiphany. The news? O man, take care! What does the deep midnight declare? Telecom is dead!

With annual turnover of a trillion dollars plus, telecom is hardly in the grave. But the traditional telecom industry is in its twilight, an economic idol being put to rest by the Internet.

And so the Furies cry: Telecom is not dead! It is infrastructure, a lasting public service! We own the customers! The Internet is just an application! It would be nowhere without us!

A seismic change in telecom

Alas, the global information industries have transformed dramatically since the last ITU Telecom World four years ago. The inevitability of an “all-IP” world is now all but certain. The signs are everywhere. Skype, the free voice upstart, has eclipsed 100-year old telephone monopolies to become the largest provider of international phone traffic. Twitter, texting and social

networking are replacing casual phone calls as local fixed line networks contract. The speed a mobile device can browse the Web or forward a digital photo has become the measure of the market.

Telecom is not dead any more than God was dead for Nietzsche. But there has been a seismic change in telecom these past four years – a passage into uncharted territory. The Internet is dismantling the orthodoxy of one of the most powerful industries on the planet. The infrastructure that has served the world so well for the past century is being swapped out with “next generation networks” based on the Internet Protocol. The details of how this works, though fascinating, are topics for networking gnomes and technologists.

In the past, the value of communications was directly related to scarcity. Calls were billed by the minute and there was never enough bandwidth for data. Today we have ubiquitous broadband in rich countries with the promise of “ultra-broadband” services around the corner. In Hong Kong it is already possible to enjoy 1 GB/s Internet connections in the home — about 150 times faster than the quickest service providers in Switzerland today.

Time for a new business model

Really high speeds mean that each individual communication – a phone call or file transfer – takes up an imperceptible amount of bandwidth relative to what is possible on the network. This throws off the traditional “economics of bandwidth.” Abundance overcomes parsimony. In the emerging marketplace for digital services value is created by the applications on the network rather than the network itself. Put another way, profit margins are increasingly associated with content and connectivity and decreasingly with the amount of bandwidth consumed. When bandwidth is too cheap to meter, it is time for a new business model. That’s what’s happening now.

Connecting people and machines will always be a sturdy business, like electrical transmission. But establishing physical networks is also like plumbing – prosaic and low margin. The opportunities for incremental gains come from convergence, the collision of telecom, broadcasting, media services and software made possible by IP and the Web.

It used to be that the switches in the telecom networks determined what services could be offered. Increasingly, the last mile connections will handle voice, data and video transmissions with equal ease. Software defines the service. Anyone with a data centre and cloud of computers can provide the services people want and are willing to pay for. Innovation can come from anywhere.

Competition comes from all quarters and the traditional boundaries between telecom, content and media, software and the Web are eroding. More likely than not, the cool new stuff originates from somewhere else besides the staid-but-trying desperately-to-be-hip telecom provider. The Apple Store has defined a new era of online commerce while taking a huge bite out of the high-end handset market. Google offers cheap voice services and free office software. Big websites and portals like YouTube and Facebook become engines for communities and the communities in turn create secondary markets for monetizing network traffic. Telecom providers see only a fraction of the new revenues associated with connecting people to these services.

Dead or Alive?

While broadband access will continue to make money “forever”, it has become a commodity and tends to be regulated. Growth lies in offering on-demand content to fickle consumers whose tastes constantly change. To meet the challenge telecom companies need to reinvent their businesses and evolve from a utility mindset to a lifestyle innovator. To their advantage, incumbents have tremendous inertia, huge balance sheets and formidable lobbying machines with which to shape sector policy. But a lot of them just do not understand what customers want. In the past they never had to. Telecom, like the-rock-star formerly-known-as-Prince, is not really “telecom” anymore. It has become a “digital services” free-for-all with competition coming from all quarters.

“While telecoms are trying to compete with broadcasters and cable companies they still have a lot to learn … with ubiquitous Internet connectivity, convergence and competition for content services and applications will only increase”

Where it’s all leading

Two big trends provide additional nails to traditional telecom’s coffin. Video on the net is soaring. In the US, already more than 150 million people watch up to 100 videos or 5 hours of online video per month. While the future is anybody’s guess, by 2011, US citizens may watch 250 billion video downloads online. More than two thirds of viewers are older than 35. The message: Everybody is doing it, not just the kids. Content providers, meanwhile, are keen to aggregate and syndicate programming in efforts to regain control over fragmented audiences and Balkanized

advertising revenues. While telecoms are trying to compete with broadcasters and cable companies they still have a lot to learn. What happens when you can search YouTube from your HDTV?

The other monumental trend is the imminent arrival of very, very fast wireless networks. Even the fastest mobile networks today are lazy compared to what lies just around the corner. LTE, or “long-term evolution”, will allow downloads to the handset as fast as 300 Mbps and uplinks of 50 Mbps – fast enough for Dick Tracy-like high definition video conferencing and whatever else can be dreamed up.

First services begin in the US later this year although Europe will nurse its installed base of GSM and so-called HSPDA services for a few years to come. Within five years or so, 4G networks will bump speeds to 1 GBs, breathtaking by any measure.

That mobile networks will be so fast is amazing but, strategically, there is more to it. They will make the Internet

“Growth lies in offering on¬demand content to fickle consumers whose tastes constantly change. To meet the challenge telecom companies need to reinvent their businesses and evolve from a utility mindset to a lifestyle innovator.”

truly mobile whereas today’s devices are still essentially smart phones tethered to carriers. With ubiquitous Internet connectivity, convergence and competition for content services and applications will only increase.

The old telecom world may be dead – but the new world has only just begun! «««

WISEKEY MOVES INTO DIGITAL JOB CREATION  »»» by Raymond Langley

WISeKey moves into digital job creation – Forging a new path in China

Early in the morning at a café in a conference centre in Dalian, China in September, Carlos Moreira sipped his coffee and reflected on the challenges facing his company and its interdependent, interconnected and deeply recession-battered world.

“WISeKey is becoming a bit like Google … "

The CEO of WISeKey, the Swiss maker of high-versatile digital identity encryption systems, had recently seen his company named a New Champion by the World Economic Forum, a nomination which told the Forum’s audience of established corporate, academic, news media, and political leaders that WISeKey was one of the world’s most innovative and promising new companies.

Security on a more personal level

The World Economic Forum’s faith was grand but well-placed. WISeKey is the hottest Swiss digital technology company in years. Founded in Geneva in 1999, WISeKey’s first major collaboration was with international non-government organizations, the International Organization for Security in Electronic Transactions (OISTE) foundation and the International Telecommunication Union (ITU). The partnership yielded international standards on cyber security and electronic commerce solutions that were widely embraced by governments and leading corporations around the world.

WISeKey made its PKI, which stands for “Public Root Key”, the heart of digital identity systems, devices and services designed to protect creators and consumers alike from the rogues of the digital age: hackers, spies, counterfeiters, trespassers and thieves. Whereas giant digital security corporations, like Symantec and McAfee, protected your computer mainly from a constant onslaught of faraway viruses, WISeKey’s services operated on a more personal scale.

With WISeKey’s software on your computer, you can secure your log-in info, e-mails and transactions at your convenience. If you’re a producer of high-quality, expensively manufactured goods, WISeKey can provide digitally encrypted badges and biometric readers to modernize your facilities and increase the loyalty of your customers with authentification software.

Carlos Moreira, Chairman WISeKey, Peter Liu, Chairman WI Harper and John Béguin, Chairman Swiss Style Magazine

Lastly, large-scale telecommunications projects – airports, office buildings mobile networks, etc – have become far more efficient, “green” and ready for international business when embedded with WISeKey’s full suite of digital ID programs.

Living up to a straightforward vow WISeKey’s mission statement is a straightforward vow “to facilitate and enable the mass use of secure digital identities in everyday life”. It hasn’t always been easy, but the company lives up to it.

With a corporate culture powered by the Swiss tradition of discretion and neutrality, WISeKey gained the trust of the world’s great corporations early on. It partnered with Microsoft, Rolex, and HP. Those collaborations helped those companies become greener bureaucracies, more secure product developers and better supporters of small businesses’ clients needs for secure and efficient electronic transactions. WISeKey soon moved from being a promoter of digital certifications and secure e-transaction systems to being an implementer and service provider in this fast growing field.

According to market research by Gartner, the security software market increased 19% per year in recent years. WISeKey rode that market to the

“WISeKey is becoming a bit like Google … our digital identity encryption systems are becoming platforms people and organizations customize and use to manage their lives. They often do it in creative ways we hadn’t even imagined. I find that rewarding. It feels good to empower people to shape their own fortunes.”

Governments, both federal and municipal, regularly hired WISeKey to help increase the safety and effectiveness of their internet services. Corporations in industries as varied as retail and high-speed sailboats praised WISeKey’s customized and original digital transaction systems for helping them stay a step ahead of counterfeiters of their products and data thieves.

Furthermore, WISeKey stayed true to its public service spirit and continued to collaborate with a few non-profit organizations. At the 2009 Clinton Global Initiative, Moreira announced plans for WISeKey to create digital identity solutions for mobile phones to help the world’s immigrants, both legal and illegal. Few companies can pull off these projects, for they require that WISeKey be skilled and trusted enough to play the role of honest broker, coordinator and service provider to a country’s often competing key stakeholders: government ministers, business operators, the news media, corruption watchdog groups and, last but far from least, consumers.

“WISeKey is becoming a bit like Google,” Moreira says. “Our digital identity encryption systems are becoming platforms people and organizations customize and use to manage their lives. They often do it in creative ways we hadn’t even imagined. I find that rewarding. It feels good to empower people to shape their own fortunes.”

All in all, WISeKey kept a very busy slate. The small firm was contributing digital identity solutions to the world’s greatest challenges, from sustainable development to security in electronic transactions to immigration. In 2010, WISeKey would consider a public offering of shares in the company, so its management could invest and move quickly into mass market digital identity protection for electronic transactions. It would sell digital ID products directly to consumers.

According to Scot Wingo, chief executive of ChannelAdvisor, an eBay¬backed company that helps stores like Wal-Mart and J.C. Penney sell online, e-commerce was set to grow to 15% of overall retail in the next decade from around 7%. Since e-security concerns would grow along with e-lifestyles, WISeKey’s business would flourish. Moreira thought he had all the bases covered.

A fateful meeting for a new path

Then Moreira met Peter Liu. A mutual friend introduced them to each other in the conference centre in Dalian. Liu was chairman of the WI Harper Group, one of the world’s most successful venture capital firms. With offices in Beijing, Taipei and San Francisco, and special insights on the Chinese technology markets, WI Harper Group was big time. Founded in 1996, WI Harper’s portfolio included companies like Sirf, a San Jose, California-based provider of GPS chipsets and Shanghai-based Medical System, a clinical information system provider.

Moreira and Liu hit it off. A 15¬minute chat stretched to three hours. Shared passion for international development and smart digital business eventually led the two men to discover a new path for WISeKey’s business: job creation.

It wouldn’t be easy. The job of creating jobs anywhere in the world seemed practically impossible during the recession. This fall, the Organization for Economic Cooperation and Development (OECD), a Paris-based think tank that does intense research on the challenges of 30 member countries (which happen to be most of the world’s most-developed countries), reported that unemployment would remain terrible in 2010. It would rise to nearly 10% by the end of 2010, from 5.6% in 2007, and above its previous post-1979 peak of 7.5% in 1993.

“WISeKey is very excited about the prospect of helping China deploy digital ID security technologies and solutions on a large scale”

The OECD report said that government spending programmes on the labour market – retraining programmes, for example – could be better focused. While programmes to put workers on reduced hours have sustained the incomes of many jobless people, coverage of such benefits is weak in some OECD countries.

Peter Liu and Carlos Moreira decided on the spot that investing their considerable resources and talents in a digital identity technology hub in China would be good business and good for a large society with a highly mobile labour force. WISeKey and WI Harper signed a letter of intent to collaborate on developing business opportunities for WISeKey in China.

The agreement is aimed at creating convergence in the electronic identity ecosystem in China by offering WISeKey’s expertise in value-added services and products to the growing user community of digital identification for electronic identity cards, electronic tokens, biometric devices, mobile operators and SIM identification. In short, they will facilitate the growing demand for digital authentication products, and the two companies will open physical centres to employ locals and distribute WISeKey’s entire suite of digital ID encryption services to telecommunications and e-commerce companies and ministries.

Needless to say, both men were excited about their epiphany. “WISeKey is very excited about the prospect of helping China deploy digital ID security technologies and solutions on a large scale,” Moreira said. “We will draw heavily on WISeKey’s experience in working with small and large businesses, consumers and regulators to help make our partnership with WI Harper a great success.”

Peter Liu, chairman of WI Harper, said WISeKey’s leadership role in the growing digital security market, knowledge of all stakeholder concerns and ability to navigate the politics of a strong but still developing economic context were the key attractions. “We are very happy to work with a New Champion of the World Economic Forum in helping their technology to be deployed in China,” Liu said. “We believe WISeKey’s experience in the area of digital security will have a significant impact in China when it is combined with the local manufacturing and electronics industry.”

John François Béguin, Chairman

Communications companies are experiencing what many analysts and industry insiders would term the perfect storm — a sluggish recovery, bleeding revenues and an abiding capacity glut, coupled with a cash crunch, heavy debt and eroding franchises. Added to these afflictions are fierce competition, transformational innovation and complex new regulations. With falling prices and the battle to gain market share intensifying among non-traditional and traditional telecom operators, there is just not enough room for multiple operators in most markets.
To regain firm footing and financial stability, most telecom executives are feverishly scouting new business opportunities through consolidation. Telecom players worldwide are racing to upgrade their transport and access infrastructures to enable cost-effective ways to provide new integrated services via a single network over a single access pipe.

This Special Issue will concentrate on this year’s ITU TELECOM WORLD meeting. Held every few years, TELECOM is a truly global, world-class event and networking platform for the global telecommunication and information communication technology sector. As the telecom industry undergoes a sea of change and as retrenchment and consolidation speed up, TELECOM’s focus on highlighting the reach and role of telecommunications and ICT in areas of societal change such as the digital divide, climate change and disaster relief will be of great interest, as will be the ITU’s intent presenting to stakeholders from across the sector and around the world, important global and local development opportunities. As well as offering a platform for competitors to potentially morph into valuable allies and form industry partnerships to extend and complement existing technologies and service offerings.

This issue touches upon some of the many preoccupations of the industry and presents the points of view of some of its main actors as well as providing some examples of successful endeavours. Swiss Style is honoured to be able to participate, thanks greatly to the Lake Geneva Region association and its President, Mr Jean-Charles Magnin.

That Geneva hosts this unrivalled event speaks volumes of the importance and attractiveness of the Lake Geneva region. The area is famous as a global centre of international and business affairs. Many companies, international organizations and NGOs have chosen to set up their headquarters in the Lake Geneva region because of its exceptionally favourable business and investment environment. In the very heart of Europe, the region offers a first-class transport infrastructure, with easy access to any major European city. Communications are among the most sophisticated in the world. People are open, welcoming and highly skilled, making this region an ideal location. According to recent studies, 20% of international corporate structures rank the Lake Geneva region amongst the world’s most attractive areas to relocate to, in great part thanks to the political stability and legal structures to be found here as well as the highly enviable quality of life available in the area.

So, welcome to ITU TELECOM WORLD and welcome to the Lake Geneva region!

Geneva residents enjoy the high quality of life

With the ITU Telecom World 2009 in Geneva underway, the world of information and communications technologies (ICT) holds a promising future in an otherwise unpromising economy.

The theme for the event “Open Networks – Connected Minds” creates a shared vision not only telling of the ICT industry but of Geneva itself: both will continue to use networking to advance and broaden the scope of international communication.

“The Peace Capital” – Geneva, the second most populated city in Switzerland and the capital of the Canton of Geneva, is located on the south-western tip of Lake Geneva, between the Jura Mountains and the Alps. Often referred to as “The Peace Capital” of the world, Geneva is known for its involvement and presence in international affairs.

An international edge – Geneva is be-coming increasingly more important in the international schema. Other than ITU, the often mistaken capital of Switzerland serves as the headquarters to 125 multinational companies, in addition to the some 25 international organizations and 300 international NGOs who call the city home.

Since more than half of the residential population is not native, Geneva’s international presence is part of – if not dominant of – the culture; the mix of languages, peoples and personalities makes for the ideal atmosphere to start a business, especially one that crosses borders.

Centrality of location – Recognized for its high quality of life, the cosmopolitan city offers endless advantages to its inhabitants, beginning with its centrality in Europe.  Geneva’s convenient location allows for easy travel to and from Europe’s business capitals, such as London, Frankfurt and Milan, as well as from countries in Africa and the Middle East. From the Gare Cornavin, Geneva is a just under a 2-hour train ride from Switzerland’s capital Bern.

Effective infrastructure – The city is also recognized for its reliable transport. Along with the punctuality of buses, trains are also effective means of travel within the region and within the country. Accommodations are readily available and widely assorted. Within the city, there are several conference and event facilities, including the Geneva Palexpo exhibition and congress complex, Geneva Arena event hall and the International Conference Centre Geneva.

Headquartered in Geneva – Because of its international access, multinationals like Procter & Gamble, DuPont, Take Two Interactive and Sun Microsystems have already chosen the city as their headquarters. CERN, arguably the most important physics research laboratory in the world, also finds its headquarters northwest of Geneva. The city also serves as a headquarters to several international organizations, such as the United Nations High Commissioner for Human Rights, the World Health Organization and the International Labour Organization, to name a few. Other international companies have also found a home in Geneva: Caterpillar, Credit Suisse, Iomega International, Oracle and Rolex, among many others.

Diversity of workforce – The Genevan workforce prides itself on its integrity and productivity. Because of the highly motivated and educated workforce, Geneva possesses a competitive edge: most job seekers have multiple degrees and can speak multiple languages. By reputation, Geneva workers are especially knowledgeable in the fields of research and development, information and communications technology, and medical technology and pharmaceuticals. Most often, companies find comfort in starting businesses in Geneva because of the atmosphere of the workplace.

Education – Geneva holds a renowned reputation around the world for providing excellent public and private education of high standards. With close to 300 private schools, Geneva has the highest number of international schools per inhabitant in Europe. Students travel from across Europe to experience the international flavour that Geneva brings to its education. It is home to the University of Geneva, the Graduate Institute of International and

Development Studies and the International School of Geneva. In particular, the University of Geneva is well known for its work in the biology and life sciences fields.

Leisure and cultural offerings – Ranked first for its exceptional quality of life by Mercer Consulting, Geneva offers a lifestyle unlike many other cities: it juxtaposes a cosmopolitan city with mountainous villages surrounding Lake Geneva. Because of this unique set-up, locals are involved in many outdoor activities, ranging from hiking and mountain climbing to sailing and windsurfing. The culture of Geneva streams from eating breakfast at a local café, spending days at the Art and History Museum or Red Cross Museum and finishing the night at the Grand Théâtre and the Opera House. All in all, Geneva embraces its culture and welcomes peoples of all cultures to undergo a true Swiss experience.

Tax advantages and stability – The economic and fiscal environment in Geneva is one of stability and friendliness. Because taxes operate on a cantonal level rather than a state level, individuals and corporations can experience a heavy tax relief. In fact, Switzerland has the lowest corporate tax rate in Western Europe and Geneva’s maximum marginal tax rate is among the lowest in Europe. Geneva residents are not only stable fiscally but also socially; Switzerland is known for having some of the best health-care institutions in the world and a business-friendly government.

A place for everyone – Because Geneva is such a cosmopolitan city, all peoples of different backgrounds and cultures have found a home in the city. It provides the ideal atmosphere for living, working and vacationing. No wonder it’s the world’s leader in terms of quality of life two years in a row! «««

Watchmaker Hublot and WISeKey join forces

The unacceptable plague of fraud

HI-TECH NABS COUNTERFEITERS »»» by Raymond Langley

Secret codes, hidden ciphers, information encryption, hidden extreme-security data centres in the Swiss mountains, military-grade USB keys and participation in cutting edge projects such as the world-first Internet voting system and securing the data of the Alinghi Team (the winners of the America’s Cup, world-renowned formula-type sailing race), have all been the mainstay of WISeKey’s business since its foundation in 1999.

WISeKey is now considered among the leading information security and identity management companies in the world.

Linking such technology with the luxury industry may, at first glance, seem contradictory. And yet, the prestigious Hublot watch brand called upon WISeKey’s WISeAuthentic©certification system of authenticity to assist them in fighting one of the watch industry’s main challenges: counterfeit products.

Earlier this year the two companies announced a world “first” in the fight against imitations:  that henceforward, Hublot watches will be protected by a smartcard, proving their identity and origin. This innovative solution represents a decisive step in the fight against the counterfeit trade.

The unacceptable plague of fraud

The challenge Hublot and its colleagues face is far from being a minor issue. The luxury sector is plagued by counterfeiters; in fact, counterfeiting represents the biggest threat these brands have to face and is a major concern of most manufacturers. The overall figure is indeed staggering: counterfeiting represents some 5–7% of all world trade – and it is increasing every year.

In 2008, according to the latest figures, the number of seizures of counterfeit goods in the European Union increased by 17% to reach some 43,671 incidents. Not surprisingly, the sectors most affected were the jewellery and horological sectors (an increase in seizures of fake goods of 89% over the preceding year; around 1.8 million items) and the beauty products sector (seizures of counterfeit items up 264% over previous year; more than 6 million items).

Given these figures, a country such as Switzerland, for example, is losing around $10 billion in sales due to the counterfeit “parallel” market.

“In the watch industry, we are seeing a significant increase in counterfeit goods … it was imperative for us to find a way to protect our watches and those who purchase them. WISeKey has a strong track record in security and authentication, and when looking for a partner to help us in the fight against counterfeiting, we knew WISeKey was the right choice for us.” —Jean-Claude Biver, CEO, Hublot

The hi-tech antidote of authenticity

The idea behind WISeAuthentic© consists of creating an electronic guarantee certificate, which not only contains the watch identity code, but also enables privileged access to a reserved space on the Hublot website. Both Hublot sales outlets and clients will be able to use the smartcard to instantly check via the Internet if the watch is genuine.

It’s the first time that this technology has been used as a protection against counterfeiting. “There is a patent pending on this method,” explained Carlos Moreira, CEO of WISeKey. “It is based on digital identification protected by a cryptographic smartcard associated with a Hublot watch. We supply a secured platform which the buyer can access via the watchmaker’s website where the watch can be definitively identified as part of Hublot’s inventory within an encrypted area reserved for watch identification. Each smartcard that is given at the time of purchase, in addition to its Certificate of Origin, is unique to each watch and contains full details of the product, including registration number, barcode and place where it was manufactured, among other details. It is the watch’s true DNA. If the information contained in the card is not valid, access to this area is simply denied.”

“Hublot is the first company in the world of luxury and watchmaking to attain this level of protection for its products, by combining state-of-the-art electronic technology and traditional watchmaking know-how,” adds Jean-Claude Biver, Hublot CEO. “I am proud to be the pioneer in this domain, as even though imitation is flattering (he said laughing), manufacture of counterfeit watches is an unacceptable plague for the whole of the watchmaking industry, and we must use every means possible to fight it.”

Thus, as of this autumn, purchasers of Hublot watches will find the electronic card included in their watch’s case. In addition to the information enabling traceability of the watch, they will, thanks to this card, be able to connect to the Hublot website and get access to a privileged space reserved for them, while remaining anonymous.

“In the watch industry, we are seeing a significant increase in counterfeit goods,” Biver comments. “It was imperative for us as a company to find a way to not only protect our watches but also those who were purchasing them. WISeKey has a strong track record in security and authentication, and when looking for a partner to help us in the fight against counterfeiting, we knew WISeKey was the right choice for us.”

This combination of technology with traditional watchmaking provides a fail-safe solution, impossible to replicate at a cost that is a small fraction of the amount lost in sales due to counterfeits.

Anti-fraud security net spreads farther

WISeKey is now expanding the application of WISeAuthentic© to many other luxury brands and expects its patented technology to become a standard in the avoidance of counterfeit luxury goods globally. By leveraging this technology, online shopping and auction websites have the ability to provide its users a safe, secure transaction, by controlling counterfeited goods in their product range. «««