The document describes the evolution of models for the ICT ecosystem from a six-layer model to a new four-layer model. The six-layer model included layers for networked elements, network operating, connectivity, middleware/navigation/search, content/applications/services, and final consumption. The new four-layer model aggregated some of these layers due to convergence of technologies and activities. Specifically, it merged connectivity with network operating, and merged middleware/navigation/search with content/applications/services. This new four-layer model includes layers for networked elements, converged networks, content/applications/platforms, and final consumers.

1. The New ICT Ecosystem :
Architectural Structure
SPRING 2012
Team Members :
1. Ganbat T
2. Riri K
3. Teshome W
4. Tri A
ITTP750:ICT Economics & Management , Professor

2. Content
Introduction
Basic ICT Ecosystem (The Six Layer)
New ICT Ecosystem (The Four Layer)
Conclusion

3. Introduction
An Ecological community interacting or aggregating together with
Ecosystem its environment functioning as a unit
The sector of economic activity operated based on
Information and Communication Technologies(ICT)
ICT industry
The interaction of different units or systems of the
technology, business, service etc, in an ICT industry
interacting within one unit of working environment

4. The ICT Ecosystem Layer Model (ELM)
Model of the global ICT sector that is developed in order to
assist the analyses of the sector, and to help inform the
development of appropriate corporate strategies and
government policies.
A Qualitative model that views the entire ICT sector as a
system

5. Basic ICT Ecosystem
A layer of ICT Ecosystem consists of 6 layers
(The Six Layer of ELM)

6. ELM : Description of ICT Industry
Final consumption
Content, application, and services
Middleware, navigation, search &
innovation platforms
Connectivity
Network Operating
Networked Element

7. Layer 1 : Networked Elements
• Increasing tendency, • Telecom equipment
this sector to be • Consumer electronics
integrated into • Computers
networks
• Semiconductors, etc
• System software

8. Layer 2 : Network Operating
• Integrating elements in
Layer 1 to Information • Telecom operators
& Communication • Cable TV Operators
Networks
• Satellite operators
• These integrated
• Broadcasting operators
elements run by
network operator

9. Layer 3 : Connectivity
• New firms were able to
enter layer 3 & provide
internet connectivity • France Telecom
• Some incumbent player • Deutsche Telekom
in layer 2 also entered
• A.O.L
layer 3

10. Layer 4 : Middleware, Navigation,
Search and Innovation Platforms
• The demand for search
function • Browsers
• Function to navigate • Search engines
through many hosts on
• Security software
the WWW

11. Layer 5 : Content,
Application, and Services
• Content :
– A commonly used term regarding to the Internet
and other electronic media (e.g. television and
DVDs),
or :
– A Material, which is inserted to users, such as
textual information, images, music, and movies.

12. Layer 5 : Content,
Application, and Services
• Application : program or group of programs
designed for end-users.
• It could be software programs in case of
applications software.
>>> In this course, the term ‘application’ is also
used to include functionalities, such as electronic
commerce provided by new Internet companies
such as eBay and Amazon.com.

13. Layer 6 : Final Consumption
• The Consuming from layers 1 – 5.
• Drawing attention to the importance of the
intermediate demand and intermediate
markets that exist between layer 1-5.

14. Interaction Between Layers
• The services referred to in layer 5 refer to services for
final consumers/users not for intermediate
consumers/users.
• Example :
– New entrant telecom companies purchasing local loop
access services from incumbent telecoms operators under
LLU regulations are conceived of as making an intra-layer 2
transaction in the access market located in layer 2.
– However, in using local loop access to provide Internet
access to final users (such as households) they are
conceived of as making a market transaction involving
layers 2 and 6.

15. Interaction Between Layers Con’t…
• Intermediate demand and supply relationships
(and therefore markets) exist both within and
between layers.
• Example :
– In layer 1 systems producers (such as the producers of
PCs or mobile phones) demand semiconductors and
other devices from component producers.
– Telecoms operators in layer 2 demand telecoms
equipment from telecoms equipment suppliers
located in layer 1.

16. New ICT Ecosystem(The 4-layer Model)
The new immerging of the basic ICT Ecosystem,
 Formulated due to the merge or convergence of some layers in
the basic layer systems,
 Relatively loose, open and qualitative armework to think,
and act about individual’s technologies, social and economic
issues. (Frans MA).
 It aims to offer a conceptual vehicle to analyses and strategize
about unfolding change in the digital landscape and support
decision making in: Organizations, firms & Government.
Generally, the conceptualization of the new ICT ecosystem into a
four-layer model (equipment, networks, services and content)
(Didier Lombard,CEO)

17. The Six-Layer The Four-Layer
ELM Model ELM Model(New Model)
Layer 6 : Final consumption Layer 4 : Final Consumer
Layer 5 : Content,
Layer 3 : Contents,
applications, and services
applications, services,
Layer 4 : Middleware, middleware, navigation,
navigation, search, and search, and innovation
innovation platform platform
Layer 3 : Connectivity
Layer 2 : Network operating
Layer 2 : Network operating
Layer 1 : Networked element Layer 1 : Networked element

18. Why The Four-Layer ELM Model ?
• The first aggregation :
Connectivity has been vertically integrated
e.g.: Telecoms operator incumbents vs independent
ISP
• The second aggregation :
Activities such as navigation (typified by Google
offering) which were in layer 4 of the six-layer ELM
model – are intimately connected with the provision
of content, application and services.

19. Architectural Structure
Final
consumer Final consumers
Layer 3
Platform, content & applications
Cont. & App. Providers
providers
Layer 2
Network operators
Converged Networks
Networked element providers
Layer 1
Networked elements

20. Key Points considered for the
emergance of new Ecosystem,
 Emergence of new Technologies  some layers become complimentary
 The term convergence is often used for this phenomenon.
For example, layer 1&2 in the basic ICT Ecosystem were separated
functionally, but with the new system, they become interconnected, and
their service is getting to be substituted.
 This brought vertical integration, or merger.
 The advent of internet had contributed for the impact on the structure of
the new Ecosystem.
 TCP/IP facilities the movement of packets of information across different
networks, allowing them to become interoperable, and sometimes
substituted.

21. Key Points Con’t……..
 This has facilitated the emergence of the process of convergence.
 Different firms give the same service, this may bring on the firms to merge
or compete.
 TCP/IP has another equally profound effect facilitated the emergence of
new layers consisting of new functionalities (Layer 3-5).
 It has allowed the technical separation of layer 1&2 from the upper layers
 This brings the entry of new players into the new ICT ecosystem, providing
new functionalities.
 The aggregation of layer 4(Middle ware, navigation, search & innovation
platform) & 5(Content, Application & Service in the 6 model to get layer 3 in
the 4-layer model.
 The reason for this aggregation is that: Middle ware products are
increasingly being provided by firms involved in navigation, content,
application & services.

22. Conclusion
New ICT Layer Model
System & Devices substituted each other,
Convergence from Heterogonous System to simplified (single )system
Allowing firms to vertically integrated (merged),
Competition between firms  increase QoS for buyers,
A step forward for Anywhere & Anytime service,

23. THANK YOU 