The concept of standards in telecoms dates back to the founding of the International Telecommunications Union (ITU) in 1865. Today standards play a critical role across the globe with a number of drivers for setting standards:

Interoperability between networks

When you make a phone call you expect to be able to talk to anyone in the world, or when browsing the Internet, view any website no matter where it’s located. In reality, this assumes that all the networks run by a diverse range of network operators around the world seamlessly interconnect with each other. This, which itself is a major technical achievement, was the initial driver for the first meeting of the International Telegraph Union (now the ITU) when they met in Paris in 1865 to set out the first standards. Standards support interoperability between networks in different countries, as well as interconnection between networks in the same country, allowing customers a competitive choice between services from different operators.

Interoperability between customer equipment and network services

Consumers expect any smartphone to work with any mobile network operator, and  be able to use that smartphone anywhere in the world, even when their home network operator has no presence in that location. This requires a very exacting set of standards for the interface between the smartphone and the mobile network (normally called the ‘air interface’). The phenomenal success of mobile since the 1990s is not an accident. In the late 1980s, all the major European players along with the European Commission decided to create this standard (along with other essential standards). The European standards body, ETSI, was formed at this time with a primary objective to develop these standards and has since evolved to become a global standards project called 3GPP.  And in this way, a successful standard effectively created an industry.

Interoperability between equipment from different suppliers

Network operators may wish to choose equipment from different suppliers, creating a need for interconnection between equipment from different suppliers. Each network operator will also require many different types of equipment and software components, creating an even greater number of interfaces that need to seamlessly operate together. Standards allow for the interconnection of different components from different suppliers even within one network operator’s network. They also allow for upgrading and replacement of parts of the network without impacting overall operation of the system.

Enable volume production

When the architecture of a telecoms network is broken down into well standardised components, suppliers can specialise on specific components with a reasonable certainty that the market for those components is stable and enduring. As a result, they can gear up to high volume production and dramatically reduced unit costs. For example, the Network Functions Virtualisation (NFV) and Software Defined Networking (SDN) initiatives allow the detailed network functionality to be defined in software while the hardware supporting the functions can be high-volume, low-cost equipment such as data centre servers and data centre packet switches. 

Safety

When you buy a smartphone, you will find in the box a statement of the safety standards the device complies with. These safety standards are a legal requirement covered by UK legislation. The power adapter will meet a wide range of electrical safety standards and  is normally indicated by the British Standards Institute ‘Kite Mark’ or the ‘CE’ of the European standards bodies CEN and CENELEC. The smartphone itself will meet ‘non-ionising radiation’ standards which ensure the radio signals are all at a safe level. More generally, there are safety standards which cover all network equipment, for example covering the electrical powering, optical power of lasers, and electromagnetic interference.

Security

Security is an increasingly important and complex area of standards. For many decades there have been technical standards which allow national security agencies to have ‘lawful intercept’ alongside  statutory legal control as to how they are used. The use of Internet protocols, frequently with strong end-end encryption for all services including voice calls, makes this more complex. Alongside this is the possibility that networks can be ‘hacked’, with the ever-growing complexity of network technology and the increasing use of software components greatly increasing what is called the ‘attack surface’. Security standards are now both a wide-ranging set of technical requirements and specifications as well as a set of good practice, design rules, and operational procedures.

Competition policy

Many countries and regions, including the UK and the EU, can enforce the use of technical standards to facilitate and promote competition. As with safety, these standards carry the force of law. In the UK, NICC sets these standards, many of which are intended to allow network operators access to Openreach’s network. This derives directly from the regulation of BT as having ‘significant market power’ in certain key markets in the UK. While at a European level, the EU Commission recently decided to enforce the use of USB C as the charging interface on all portable devices. 

Control and allocation of scarce resources

There are some resources which cannot be expanded - such as radio spectrum - or are so expensive to create, it is unrealistic to expect more than one instance to be economically sustainable, for example, the ducts and poles outside the dense urban areas that support telecoms cables to homes and businesses. In these cases, governments may take direct control of the allocation of the resources. In the case of spectrum, the government, through Ofcom, auctions spectrum licences to network operators. For duct and poles, Ofcom has defined a service where Openreach must supply to network operators at a specified price. In both cases, there are detailed technical specifications associated with this controlled allocation of scarce resources. Such specifications may be based on options within existing standards, or go beyond them.

Why SMEs Should Engage with Standards 

Unlike standards in many other industries, the great majority of standards in telecoms are voluntary – they are written by the industry for the benefit of the industry and have no legal status. Despite the absence of a  legal requirement to conform to most standards, companies of all sizes participate, with standards forming an essential part of their business strategy. It is clear therefore that standards participation offers tangible value.

Many successful SMEs have chosen active participation in standards as a key part of their business strategy. No two SMEs are the same and your objectives for standards participation might not be the same as others, but there are some core reasons which are likely to be relevant to most organisations.

  • Your best customers are there
    Your best customers are there

    You’ll find technically literate representatives of most players specific to your business at the relevant standards meeting. Attendees are typically highly technical and there are normally many opportunities to discuss the technical merits of your products with people who will both understand your product and are likely to have a level of influence in their own companies. Put simply, standards meetings offer a fantastic opportunity to engage with the people who could become your biggest customers.

  • Standards and commercial success go hand in hand
    Standards and commercial success go hand in hand

    Standards participation offers an immediate and strong source of feedback . A commercially successful product can strongly influence the direction of standards and so too, standards can influence the commercial success of products. If your product is strong and appealing to customers, there is likely to be support in the industry for the specification of the interface to become a standard. And having your product as the leading implementation of the standard, drives the success of the product itself. None of this can happen however, without your participation. 

  • Align and monetise your IPR
    Align and monetise your IPR

    Good IPR is often at the foundation of a successful SME in telecoms. Being part of the standards process ensures you don’t develop IP that is at odds with standards - which would limit the long-term commercial success of any product. There can also be considerable value to the SME in th IP becoming a ‘standards essential patent’ i.e. essential to the implementation of a standard . Most standards bodies have rules on the way standards essential patents are licenced, however, this licence income can be an important source of income, and can greatly increase the valuation of your company, helping to attract investment.

  • Source of industry intelligence
    Source of industry intelligence

    A good standard may well try to allow for future evolution and deliberately leave aspects of the specification open for future developments, even if this is not formally documented. Just reading a standard therefore does not give insight into the likely future direction of the standard and the related sub-sector of the industry. By being present at the relevant standards meeting however, you can see who is interested in driving the industry in particular directions. As well as identifying people working on similar ideas to you, it is also possible to see who is working on complementary ideas to your product and who might be useful partners.

  • Your best customers are there
    Your best customers are there

    You’ll find technically literate representatives of most players specific to your business at the relevant standards meeting. Attendees are typically highly technical and there are normally many opportunities to discuss the technical merits of your products with people who will both understand your product and are likely to have a level of influence in their own companies. Put simply, standards meetings offer a fantastic opportunity to engage with the people who could become your biggest customers.

  • Standards and commercial success go hand in hand
    Standards and commercial success go hand in hand

    Standards participation offers an immediate and strong source of feedback . A commercially successful product can strongly influence the direction of standards and so too, standards can influence the commercial success of products. If your product is strong and appealing to customers, there is likely to be support in the industry for the specification of the interface to become a standard. And having your product as the leading implementation of the standard, drives the success of the product itself. None of this can happen however, without your participation. 

  • Align and monetise your IPR
    Align and monetise your IPR

    Good IPR is often at the foundation of a successful SME in telecoms. Being part of the standards process ensures you don’t develop IP that is at odds with standards - which would limit the long-term commercial success of any product. There can also be considerable value to the SME in th IP becoming a ‘standards essential patent’ i.e. essential to the implementation of a standard . Most standards bodies have rules on the way standards essential patents are licenced, however, this licence income can be an important source of income, and can greatly increase the valuation of your company, helping to attract investment.

  • Source of industry intelligence
    Source of industry intelligence

    A good standard may well try to allow for future evolution and deliberately leave aspects of the specification open for future developments, even if this is not formally documented. Just reading a standard therefore does not give insight into the likely future direction of the standard and the related sub-sector of the industry. By being present at the relevant standards meeting however, you can see who is interested in driving the industry in particular directions. As well as identifying people working on similar ideas to you, it is also possible to see who is working on complementary ideas to your product and who might be useful partners.