apr i l 2009

Wo r l d C l a s s S t a n d a r d s

annual repor t

ETSI is a producer of globally-applicablestandards for information and communicationstechnologies (ICT), including fixed, mobile,radio, converged, broadcast and Internettechnologies.

ETSI is officially recognised by theEuropean Union as a European StandardsOrganisation. Its standards help ensure thefree movement of goods within the singleEuropean market and allow enterprises in theEU to be more competitive. The high qualityof its work and its open approach tostandardisation has helped it evolve fromEuropean roots to extend global branches.

ETSI is a not-for-profit organisation withmore than 760 member organisationsworldwide, drawn from 63 countries and fivecontinents. Members include the world'sleading and most innovative companies.

ETSI is a world-renowned organisationwith a solid reputation for technicalexcellence. It makes its expertise ininteroperability, and the standardisation ofsome of today’s most important technologies,available to its Members and customersthrough a range of services for growing ideasand enabling technology.

ETSI’s purpose is to create value forits Members and value for theircustomers.

Customers rightly demand goodvalue when they spend the moneythat supports our industry. And thereis ample evidence of a long history ofETSI creating standards to meetcustomer needs, adding significantvalue across a broad range oftechnologies.

Today, in talking to Members I hearthat many are feeling the effects ofthe current economic situation wherecustomers are examining theirspending very carefully indeed.

At the same time I see informationand communication technologies(ICT) continuing to develop at aphenomenal rate, offering newopportunities to reduce cost andincrease efficiency in businessprocesses.

I am delighted to say that in 2008ETSI made significant progress inaddressing new directions dictated byan evolving future. The Boardcontinues to work on your behalf onnew strategic initiatives, lookingespecially at how the ICT industry willemerge from difficult times, to makesure that ETSI will play its part inpreparing the right standards for themarkets that are to come. I am happyto see an ongoing focus in ETSI onthe importance of creating value forcustomers.

John Phillips Chairman of the General Assembly

2008 was characterised by theongoing achievements of our long-standing flagship projects on onehand and, on the other, investment innew technologies.

Four new Technical Committees havebeen created to deal with new topics– Reconfigurable Radio Systems, IMSTesting, Machine-to-MachineCommunications and Digital MediaContent Distribution. The firstIndustry Specification Group, onQuantum Key Distribution, has alsoalready made remarkable progress.With the initiation of this work, ETSI isbuilding on existing expertise toembark on the importanttechnologies of the future.

At the same time, old committees onwhich the Institute has built itsreputation are developing newaspects of their work, tacklingInternet Protocol Television, forinstance, developing a newgeneration of Digital EnhancedCordless Telecommunications(DECT™) and enabling the smart cardplatform for use in Near FieldCommunication applications. 3GPP™Release 8, which includes thespecifications for LTE™, the latestevolution of the 3G mobile system,was frozen in December 2008.

The following pages demonstrate theenormous progress made in a diverserange of technologies. I am delightedto hand over to my successor asBoard Chairman an Institute that istackling the challenges of emergingtechnologies enthusiastically andeffectively.

Francisco da SilvaChairman of the Board

During 2008 ETSI has madeenormous progress in ensuring thatthe Institute remains at the leadingedge of new technologies and thatour Members can rely on ETSI as theprovider of the standards for theirfuture business.

We introduced the IndustrySpecification Group (ISG) – a new pre-standardisation fast-trackmechanism to bring researchactivities closer to standardisation,and to agree specifications swiftly.This materialised in the first ISG. Weinitiated the ‘Hell’s Kitchen’ conceptto kick-start new activities, and weorganised a meeting with CTOs tolook into the ‘Long Term Vision forETSI’ to better address the challengesahead.

We increased our links with leadingresearchers and scientists, helping toclose the gap between research andstandardisation, and we have seenrising membership numbers,particularly from academia, theresearch sector and among Small andMedium-sized Enterprises (SMEs) andmicro-enterprises. Geographically toothe Institute is expanding as itreaches out to emerging markets.

As well as our core standardisationactivities, following the launch ofInteropolis™ and the regrouping ofour standards enabling services, ETSInow offers services for fora support,testing and interoperability that areunrivalled within the standardisationcommunity.

In summary, in 2008 ETSI proved thatit remains not only the leading butalso the most innovative StandardsDevelopment Organisation in thefield of ICT.

Walter WeigelDirector-General

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Annual Report 2008 (published April 2009)

2008 has seen enormous progress in the ‘future-proofing’of ETSI to equip and direct the Institute to meet itsMembers’ future business needs.

The achievements of the year include the successes of thelong established projects on which the Institute has builtits reputation combined with the promise of emergingtechnologies. New Technical Committees wereestablished to deal with Reconfigurable Radio Systems,Internet Protocol Multimedia Subsystem (IMS) Testing,Machine-to-Machine Communications and Digital MediaContent Distribution. All of these projects are expected toopen up new constituencies and have already attractedconsiderable interest worldwide.

A new pre-standardisation fast-track mechanism has beenintroduced, with the aim of bringing the world of researchalongside that of standardisation, leading to fasterstandards-making. The first such ‘Industry SpecificationGroup’ (ISG) was established in July, on Quantum KeyDistribution.

Links with leading researchers and scientists increasedsubstantially in 2008. The Institute is now participating in anumber of research projects under the European Union’sSeventh Framework Programme (FP7), notably in the areaof Radio Frequency Identification (RFID). Here, ETSI candiscuss directly with researchers how to turn researchresults into standards. Two ‘Hell’s Kitchen’ sessions tookplace, one of which has led to new co-operation and newwork on the concept of the Wireless Factory. Finally, theInstitute called together a group to look into the ‘LongTerm Vision for ETSI’.

Our Intelligent Transport Systems Technical Committee(TC ITS), which was only launched in 2007, is making goodprogress. A basic set of application requirements is beingprepared and the first full set of ETSI ITS standards isexpected by the end of 2009.

In parallel, old committees are advancing in newdirections, addressing Internet Protocol Television (IPTV),for example, developing a new generation of DigitalEnhanced Cordless Telecommunications (DECT™) andusing the smart card platform for Near FieldCommunication (NFC) applications. ETSI’s world-

renowned Human Factors Technical Committee is nowanalysing emerging eServices, to ensure that the ICTproducts and services of the future are designed toaccommodate not just the mainstream consumer but alsothose whose needs may be different from the majority,such as the elderly and users with disabilities.

But ETSI offers more than just its core standardisationactivities. In January 2008 Interopolis™ was launched,ETSI’s standards enabling services were restructured, andthe Institute is now attracting Members and non-Membersalike with its services for support, testing andinteroperability.

With over 70 external partnerships and excellent workingrelationships with the European Commission and otherStandards Development Organisations (SDOs), ETSI iswell placed both to influence developments and to drawon a valuable pool of expertise as input to its activities.

The widening of the Institute’s customer base in 2008 isreflected in increased membership numbers. In particular,the number of academic and research organisations,SMEs and micro-enterprises grew considerably in 2008.All of ETSI benefits from this extended participation. Inaddition, the Institute is extending its geographicfootprint to meet the needs of new markets around theworld. Different sectors of industry, where ICT arenecessary as enabling technologies, are also nowrecognising that ETSI, with its global footprint, its directmembership principle and ground-breaking IPR policy, isan excellent choice to standardise ICT.

Despite the global economic crisis, the Institute’s financesare stable. Nevertheless the situation is being closelymonitored. Action has been taken within the Secretariatto improve ETSI’s ability to manage effectively. Increasedstaff and management training has enhanced the qualityof support provided to Members. The Institute has been apioneer in the use of electronic meetings and goodprogress is being made with the ETSI Green Agenda.

ETSI has its sights very much set on the future, but itbuilds on the achievements of its past. 2008 was anotheryear of success to underpin the Institute’s ongoingactivities.

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Building the Future – 2008 and Beyond

A number of proposals for encouraging pre-standardisation activity were developed in 2008.

Industry Specification GroupsA new pre-standardisation fast-track mechanism has beenintroduced, designed to align research activities moreclosely with standardisation, and to accelerate theproduction of specifications.

The first such ‘Industry Specification Group’ (ISG) wasestablished in July, on Quantum Key Distribution, as a direct result of the first Infinity Initiative event, co-organised by ETSI and the European Research

Consortium for Informatics and Mathematics (ERCIM).ISG-QKD has the participation of partners from industry,research and academia from all over the world.

Hell’s KitchenThe concept of ‘Hell’s Kitchen’, established as part of theETSI Strategy for 2008, has proved very fruitful and will becontinued in 2009. Two Hell’s Kitchen sessions took placein 2008: one a presentation on ‘Quickscan best practicesfor SDOs’ and the other on the Wireless Factory, as aresult of which new co-operation has been initiated and aroadmap for wireless factory standards is beingdeveloped.

Innovation, Research and New Initiatives

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New Standards in CommunicationSecurity – Quantum Key Distribution Quantum cryptography will bring new levels ofconfidentiality and privacy to the communications of thefuture. Due to the astonishing effects of quantum physics,quantum encrypted messages are totally immune fromeavesdropping. Quantum cryptography will thus becomea driver for the success of numerous services in the fieldsof eGovernment, eCommerce, eHealth, the transmissionof biometric data, intelligent transport systems and manyothers.

During recent years quantum cryptography has seenrapid progress, and it is now extending into a competitiveindustry with commercial products.

In 2008, ETSI established a Quantum Key Distribution(QKD) Industry Specification Group (ISG-QKD). Manycountries outside Europe have already made effortstowards national standardisation for quantumtechnologies but so far none of these initiatives hasmoved beyond the identification of a need for

standardisation. ETSI’s creation of ISG-QKD is a strategicresponse to increasing interest in the potential of QKDfor secure communications. The Group’s task is to transferquantum cryptography out of the controlled and trustedenvironment of experimental laboratories into the realworld.

Activities kicked off in October 2008 and the Group metagain in December. Initially eight work items are beingaddressed.

ISG-QKD has attracted partners from industry, researchand academia from all over the world. An important goalis to bring together the scientists who are developingquantum cryptography with prospective commercial usersso that they can learn from each other what thetechnology is able to deliver and what is needed forpractical application.

This new initiative moves ETSI into exciting newtechnological realms and opens up participation in itsstandardisation work to new constituencies.

Fostering links with Research ProjectsAdditional outreach to the R&D community has begun.

EU R&D ProjectsHelping to close the gap between research andstandardisation, ETSI is actively involved in a number ofEuropean Union (EU) R&D projects under the SeventhFramework Programme (FP7): project Walter (WirelessAlliances for Testing Experiment & Research) which isdedicated to UWB testing, and three projects on RFID:the CuteLOOP project (Customer in the Loop), the GRIFSproject (Global RFID Interoperability Forum forStandards), and the CASAGRAS project (Co-ordinationand Support Action for Global RFID-related Activities andStandardisation), which brings ETSI together with partnersin Europe, Hong Kong, China, Japan, Korea and the USA.Here, ETSI can discuss directly with the researchers howto turn research results into standards.

Eureka Clusters and European TechnologyPlatformsETSI is also developing contacts within the CELTIC andITEA 2 clusters in the European Eureka initiative, whichrepresent a suitable source of input to ETSIstandardisation activities. Projects in these clusters tend to

produce research results which are relatively close tomarket deployment and include participation from a largenumber of Small and Medium-sized Enterprises (SMEs),with the potential for innovative ideas and strong growthprospects.

ETSI is also participating in relevant research conferencesand meetings of European Technology Platforms (forexample, NEM (Networked and Electronic Media), theEPoSS platform on smart systems integration, andeMobility).

Membership Growth in New AreasThe results of this outreach (and of the ETSI Members’decision to reduce their membership fees) can be seen inthe number of new applicants for ETSI membership fromuniversities and public research bodies. In 2008 ETSImade a strategic move to extend participation in its work,and the growing interest in membership by Small andMedium-sized Enterprises (SMEs), micro-enterprises,universities and public research bodies is thereforeencouraging. Numerically, they now represent almost athird of the Institute's membership. There was aparticularly marked rise in the number of micro-enterprises, research organisations and universities.

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RFID and Electronic ArticleSurveillance The market for inductive devices and Radio FrequencyIdentification (RFID) and Electronic Article Surveillance(EAS) systems has seen steady growth in many areas.RFIDs are used, for example, in the automotive industry,access control, waste management and animalidentification. EAS anti-theft systems are the only realprotection against theft in shops and supermarkets.Independent marketing reports point to a dramaticgrowth in RFID over the next 15 years.

ETSI is at the forefront in the development of RFID.There is considerable momentum to the standardisationof RFID Security and Privacy and ETSI has initiated workon this topic. The Institute organised two RFIDworkshops in 2008, and hosted two Cluster of EuropeanRFID Project meetings. ETSI is also a member of the newEuropean RFID Thematic Network which replaces theEuropean Commission RFID Expert Group (EU REG).

To ensure that adequate spectrum is available to meetfuture needs, ETSI has prepared a System ReferenceDocument outlining new spectrum requirements for RFIDequipment and inductive loop systems operating in thefrequency range 9 - 148,5 kHz. At the same time, therelated European Standard (EN) is being revised.

A System Reference Document for RFID equipment andShort Range Devices (SRDs) was published in 2008. Thespectrum request is under consideration in CEPT. The

related EN was published and a revised version is due in2009. Installation guidelines have also been prepared.

A successful RFID Plugtests™ event was performed atvenues in Germany and the Netherlands during June 2008 to check for interoperability problems whenmultiple tags manufactured by different vendors aresimultaneously present in the same interrogation field.Tests were run to scan clothing tags, stacks of DVDs,pallets containing multiple tagged items passing througha portal and items on a conveyor belt, simulating, forexample, airline baggage or tagged goods movingalong a production line.

As a result of its new contacts at the leading edge ofresearch and development and in response to identifiedmarket needs, four new Technical Committees werecreated in 2008: IMS Network Testing (TC INT), Machine-to-Machine Communications (TC M2M), Media ContentDistribution (TC MCD) and Reconfigurable Radio Systems(TC RRS).

IMS Network TestingThe Internet Protocol Multimedia Subsystem (IMS)comprises a set of specifications designed to enablenetwork operators to implement IP-based networks thatcarry services for both fixed and mobile customers. Thebusiness model of advanced communications over thenext generation network (NGN) can only be delivered iffixed and wireless networks can interconnect.Interoperability is therefore a crucial factor governing theroll-out of IMS and, more specifically, networkinterconnection between operators. Operators can ensureoperational excellence in a multi-vendor and multi-provider environment only via testing in a real lifesituation.

To boost the roll-out and take-up of IMS services andoperators’ network interconnections, ETSI has set up aTechnical Committee to deal with IMS network testingspecifications and interoperability issues. The IMSNetwork Testing Technical Committee (TC INT) held itsfirst meeting in May 2008.

TC INT is developing specific IMS test specifications forinteroperability, conformance and network integrationfrom specifications produced by the Third GenerationPartnership Project (3GPP™) and ETSI’sTelecommunications and Internet Converged Services andProtocols for Advanced Networks Technical Committee(TC TISPAN). TC INT’s work in 2008 focussed onConformance Test Specifications for the use of SessionInitiation Protocol (SIP) and Session Description Protocol(SDP) in IMS core networks and Interoperability TestSpecifications for IMS Network-to-Network Interface (NNI)interworking.

TC INT has responsibility for the organisation of IMSinteroperability events in association with ETSI’s Centre forTesting and Interoperability (CTI) and its Plugtests™interoperability testing service. In November 2008 in Bled,Slovenia, ETSI held its second highly successful IMSinteroperability event. This included the testing of 3GPPIMS Release 7 interworking, roaming, border control andthe integration of application servers executing selectedmultimedia telephony supplementary services.

Machine-to-Machine Communications(M2M)

Following a six-month strategic review of the demand forM2M standardisation by the ETSI Board, a new Machine-to-Machine Technical Committee (TC M2M) has been setup to develop standards in this fast-growing field. Thisreview attracted worldwide interest from a broad range ofindustry including experts from telecoms networkoperators, equipment vendors, administrations, researchbodies, as well as M2M specialist companies.

The applications of M2M are diverse; they include, forexample, personal health monitoring, intelligent trackingand tracing in the supply chain, smart utility metering,remote control of vending machines, industrial wirelessautomation and ambient assisted living. It is predictedthat, by 2010, some 2 billion machines will be connected.The cellular M2M segment in particular is forecast toproduce record growth.

Many disjointed component-level standards already exist,addressing various radio interfaces – a situation which hascreated fragmentation. Until now, little effort has beenmade to bring all these pieces together and identify thestandardisation gaps which exist. With the establishmentof TC M2M, ETSI is now confronting this challenge.

ETSI’s broad membership, drawn from the globaltelecoms and ICT industry, enables it to ‘see the bigpicture’. The collaboration which characterises its workingmethods and its extensive network of partnerships willfacilitate co-operation with other standards bodies andindustry fora. In addition, the Institute’s expertise ininteroperability and testing means it can provide not onlythe architecture-level standards required, but also the testspecifications essential to demonstrate end-to-endinteroperability.

TC M2M will support M2M services and promoteinnovation across the industry. It is expected to play acrucial part in developing standards to allow objects tocommunicate between themselves and to be connectedon the web; its work will produce some of the essentialbuilding blocks of the ‘Internet of Things’.

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New Technical Committees

Media Content Distribution

‘Content delivery’ is the delivery of digital media ‘content’such as digital audio, digital video or computer softwareand games over a delivery medium such as broadcastingor the Internet. With the convergence of broadcast,Internet and telecommunications technologies,standardisation and interoperability are essential for thesuccess of digital media distribution. In response to thismarket demand, ETSI established a ‘Starter Group’ in2008 to assess the Institute’s potential role in thisdeveloping area. As a result of this review, a new MediaContent Distribution Technical Committee (TC MCD) wasset up. Its task is to guide and co-ordinate standardisationwork aimed at the successful overall development ofmultimedia systems (television and communication).

The Starter Group attracted considerable interest, anddrew participants new to ETSI. TC MCD includesrepresentatives of the content provision industry such asbroadcasters, studios and TV channels. Broadcastoperators, network suppliers and operators, InternetService Providers (ISPs), device manufacturers, consumerelectronics and the smart card industry are alsoparticipating.

TC MCD will address interoperability issues in aconverged environment supporting Internet Protocol TV(IPTV), mobile TV and broadcast TV. As most of themanufacturing in this industry is undertaken outsideEurope, TC MCD will not limit its liaisons to Europe butwill involve consumer equipment manufacturersworldwide. The ultimate goal is the adoption of aconsistent set of worldwide solutions.

TC MCD will provide a platform where use cases andbusiness models can be discussed in the context ofeconomics and global dynamics in order to assess theviability of a given standard. A framework and roadmapfor service interoperability will be produced and gapsidentified to highlight the challenges in the end-to-enddelivery of content.

The deliverables planned include the definition of usecases (content portability, interactivity portability, serviceinteroperability, content distribution), and ofimplementations and ‘best practice’ for serviceinteroperability. This will involve an analysis of current andfuture business dynamics. The Committee will then co-ordinate standardisation activities to realise this MCDframework vision and foster the co-ordinateddevelopment of standards for digital media distributionacross unicast, multicast and broadcast networks. TC MCD will also identify regulatory issues produced byconvergence effects.

Reconfigurable Radio SystemsBorn out of a Workshop on Software Defined Radio (SDR)and Cognitive Radio (CR) which ETSI hosted in February2007 and aimed at attracting the results of Europeancollaborative R&D projects, after a period of intensediscussion, investigation and planning, ETSI launched itsnew Reconfigurable Radio Systems Technical Committee(TC RRS) in 2008 to examine the possible standardisationof RRS.

RRS are intelligent radio devices which offer significantpotential for maximising the use of scarce and expensivespectrum by sensing – and acting upon – theirenvironment. For example, they can adjust for location,time, frequency, other users etc. They can scan for unusedfrequency, opening up the opportunity to negotiate theuse of unused spectrum. The establishment of TC RRSextends recent research into Software Defined Radio andCognitive Radio, and demonstrates ETSI’s commitment torespond to the latest technological innovations.

The Committee held its first meeting in March 2008,attracting over 50 manufacturers, operators, regulatorsand other interested parties.

TC RRS is tasked with answering three key questions: whyshould RRS be standardised, what should be standardisedand how should RRS be standardised.

The Committee is charged with completing its reports onthese topics within 18-24 months. Work progressed well in2008 and the first ETSI Technical Report, a referencearchitecture for SDR mobile devices, was scheduled forapproval in February 2009.

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Intelligent Transport Systems use ICT to provide servicesto improve the safety, reliability, efficiency and quality oftransport. But two aspects of ITS service provision make itparticularly important: the safety of road users through thereduction of death and injury (in Europe, over 40 000deaths occur on our roads every year and there are morethan 1,25 million injuries); and the efficient use oftransport systems to minimise pollution emissions such asCO2 and to optimise fuel consumption.

The potential applications of ITS are numerous andexciting. They include vehicle-to-vehicle as well as vehicle-to-roadside communication and the networks behind thiscommunication, police and emergency services, trafficcontrols, signs in cars and parking services.

ITS service provision, especially the more advancedservices, relies on communications – both wirelesscommunications with and between vehicles and backbonesystem telecommunications. This makes ITS an area ofstrategic relevance to ETSI and one where ETSI leadershipis required, particularly in relation to the Europeanrequirements for the provision of ITS services.

The work of ETSI’s Intelligent Transport Systems TechnicalCommittee (TC ITS) is actively supported by a largevariety of companies including car-makers, the automotivesupply industry, silicon vendors, network operators,research organisations and test houses.

The initial focus of TC ITS is on the overall architecture forITS including detailed applications, networks, media andsecurity/privacy issues, in particular for co-operativevehicular communications to provide interoperability.Great attention is therefore being paid to creatingcommonly agreed standards for the network architecture,protocols and transmission formats to help achieve globalinteroperability and the harmonisation of ITS services andapplications. ETSI’s work also has clear relevance to multi-modal types of transport and travelling – railways, aviationand the maritime sector.

ETSI is addressing vehicle-to-vehicle and vehicle-to-roadside communication for ITS for safety and road trafficefficiency using 5,9 GHz ITS radio. Major progress wasachieved within the regulatory environment with theEuropean Commission’s decision to designate a 30 MHzbandwidth in the 5,9 GHz frequency band for ITS roadsafety applications. An additional 20 MHz band has beenidentified for the future and a frequency band of 20 MHzhas also been identified for non-safety ITS applicationswhich will be important for commercial services in supportof safety-related services. ETSI’s standardisation work forco-operative ITS is now based on this regulation.

ETSI’s main task in this area in 2008 was the preparation ofa roadmap of the standards required to support basicapplications. A basic set of application requirements is

being prepared which will be published as an ETSITechnical Specification (TS) in 2009.

In close co-operation with European R&D projects, ETSI isalso developing a common communication architecturefor ITS. This work will define the direction of ITS and howdifferent elements should be built up and co-ordinated tomeet global acceptance.

A routing protocol – ‘GeoNetworking’ – is beingdeveloped which allows the routing of data packets in adhoc vehicle networks without the co-ordination of acommunications infrastructure, and TC ITS has almostcompleted a European profile standard for the 5,9 GHzband as well as specifications for Transmitter PowerControl (TPC).

Security issues and mechanisms to assure the protectionof user privacy in the presence of attackers at the radiointerface for the 5 GHz modes are being pursued.

The first full set of ETSI ITS standards is expected by theend of 2009.

Intelligent Transport Systems

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The spectrum implications of ITS are addressed byETSI’s EMC and Radio Spectrum Matters TechnicalCommittee (TC ERM). In 2008 TC ERM produced aHarmonised Standard which enables the automotiveindustry to introduce radio systems for ‘smart’ vehiclecommunications systems (so called ‘co-operative’systems). Such systems enable one car to ‘talk’ toanother and to road infrastructure providers, usingwireless communication technology. Warning otherdrivers of adverse road conditions or of a crash whichhas just happened are just two examples of possibleuses for this technology. The European Commissionhas already allocated a single European Union (EU)-wide frequency band to be used for these purposes.This new Harmonised Standard completes the set oflegal and regulatory instruments required forintroducing ITS across the EU.

The use of smart card platform specificationsrevolutionised mobile communication systems. Inparticular, it allowed users access to global roaming,irrespective of the radio access technology used. Butthese specifications also provide a true multi-applicationplatform (called the UICC) not just for mobilecommunication systems but for all applications using asmart card. This means that interoperability betweendifferent applications based on the smart card platformcan be assured.

The major achievement of 2008 was the conclusion ofwork on the use of the smart card platform for Near FieldCommunications (NFC) – a short-range high frequencywireless communication technology which enables theexchange of data between devices over about a 10centimetre (around 4 inches) distance. The technologycombines the interface of a smart card and a reader into asingle device which can communicate with other smartcards and readers, as well as with other NFC devices, andis thereby compatible with existing contactlessinfrastructure already in use for public transportation andpayment. The potential applications are diverse – and farremoved from the smart card’s original purpose intelecommunications: they include ticketing and accesscontrol for public transport and access control to premisesas well as payment by credit card or an electronic purseresiding on the UICC.

Work on the lower layers, the Single Wire Protocol (SWP),which had been published in 2007, continued in 2008 withthe usual improvements resulting from the firstimplementations. The management level, the so calledHost Controller Interface (HCI), was finalised in 2008 withthe selection of an option which provides an architectureand placeholders for a potential (interoperable) extensionof the specification. It also includes a mechanism for theUICC to proactively request the terminal to interact withthe user so that, for example, the result of a transaction orthe remaining balance for an e-purse can be displayed.

Completion of the HCI specification brought ETSI’s workon Release 7 of the Smart Card specifications to an end.The elaboration of requirements for Release 8 has alsobeen completed, and the first requirements for Release 9have already been approved.

As part of Release 8, ETSI has delivered a comprehensivesecure channel technical solution that allows theencryption of all communication on an application-to-application and a platform-to-platform basis. Maintenanceof this specification following initial implementations hasproduced a very robust specification, which is now beingused to help secure the Open Mobile Alliance (OMA)Mobile Broadcast Services Enabler Suite (BCAST), theopen global specification for mobile TV and on-demandvideo services.

Running alongside this technical development, ETSI isdealing with the increasing demand for test specificationsfor new features and functions.

Digital content distribution and services on mobilephones are expected to be the next business driver forthe mobile industry. Collaboration with the OMA in 2008resulted in a number of new features and functions for theSmart Card Web Server as well as in the elaboration ofrequirements for the use of the UICC for SecureRemovable Media (SRM). The technical realisation ofhaving digital rights stored and managed in the UICC willform part of Release 9.

The work on reduced-capability terminals (e.g., no screenor keypad), requested by GCF (the Global CertificationForum), was completed in 2008, enabling proper typeapproval of those devices including all the features of theCard Application Toolkit (CAT). These tests are importantwith regards to creating standards-based machine-to-machine (M2M) devices. ‘Standard’ SIMs have been usedfor specific M2M applications, such as metering, for sometime. Other applications may, however, require specialfunctionality and different hardware properties such as anextended temperature range or a new form factor. Therequirements and use cases for M2M smart cards wereagreed in late 2008, and their technical realisation is duefor completion as part of Release 9.

Release 9, which is expected to be closed by the end of2009, will include the definition of use cases where RadioFrequency Identification (RFID) applications may requirethe use of a UICC, the technical solution for confidentialapplications and the requirements for CAT access onmodem interfaces. Mobile modems are becoming asignificant sector of the mobile communications marketand the support for CAT in these devices is currentlylimited by the lack of standards defining how CAT shouldbe extended to clients interfacing with the modem. Thecompletion of the test specifications for the ContactlessInterface will allow the smooth introduction of services onthe UICC using NFC.

Smart Cards – Telecoms and Much, Much More

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Each Release of 3GPP system specifications for cellulartelecommunications provides mobile operators andequipment manufacturers with a stable reference platformto build networks and terminal equipment. Release 8,which includes the specifications for LTE, the latestevolution of the 3G mobile system, was functionally frozenin December 2008.

In completing the LTE specifications, a wholesale revisionof the radio interface and core network architecture hasbeen undertaken, taking end-to-end packet switching toits logical conclusion with the elimination of any need forcircuit switched elements (apart from interworking withlegacy systems). Release 8 represents effectively the mostcomprehensive overhaul of 3GPP’s technical output todate.

LTE takes offThe LTE radio technology, known as E-UTRAN, is the latest evolution of 3GPPradio access interfaces. It usesOrthogonal Frequency Division MultipleAccess (OFDMA) to provide several keybenefits, including significantly increasedpeak data rates, increased cell edge

performance, reduced latency, scalable bandwidth, co-existence with GSM/EDGE/UMTS systems andreduced capital and operating expenditure.

Users benefit from lower latency, and higher capacity andthroughput. LTE will deliver peak downlink data ratesabove 100 Mbps at reduced cost per Gigabyte, and it canuse existing 2G and 3G spectrum as well as new spectrumallocations.

A high performance air interface demands a highperformance core network. Running parallel with thedevelopment of E-UTRAN, 3GPP’s core network hasundergone System Architecture Evolution (SAE), with thedevelopment of a framework for a migration of the 3GPPsystem to a higher data-rate, lower latency system,optimised for packet mode and in particular for theInternet Protocol Multimedia Subsystem (IMS).

3GPP has been developing SAE with an emphasis oncost-efficient deployment and operations for mass-marketusage of IP services as well as improvements in theintegration of non-3GPP access technologies.

LTE™ – The Culmination of 10 Years of Achievement in 3GPP™

ETSI and 3GPP ETSI is one of the founding partners of the ThirdGeneration Partnership Project (3GPP™) in which theInstitute comes together with five other regionalstandardisation organisations in Asia and North America,plus market associations and several hundred individualcompanies. ETSI is the preferred partner through whichEuropean companies can participate in this collaborativeactivity.

In 2008, 3GPP celebrated its tenth anniversary.Established to develop globally applicable specificationsfor third generation mobile telecommunications (theInternational Telecommunication Union’s (ITU’s) IMT-2000family), 3GPP is also responsible for the maintenance andevolution of the specifications for the enormouslysuccessful Global System for Mobile communication(GSM™), which was defined by ETSI, and for transitionaltechnologies, including the General Packet Radio Service(GPRS), Enhanced Data for GSM Evolution (EDGE) andHigh Speed Packet Access (HSPA).

3GPP is supported by ETSI’s Mobile Competence Centre (MCC).

Further information at: www.3gpp.org

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What is in Release 8?• Release 8 contains a new radio access network (the

Evolved UMTS Radio Access Network – E-UTRAN) and a new Systems Architecture (System Architecture Evolution – SAE) which offer average user throughput of three to four times previous High Speed Downlink Packet Access (HSDPA) levels in the downlink (100 Mbps), and two to three times previous High Speed Uplink Packet Access (HSUPA) levels in the uplink (50 Mbps). Together E-UTRAN and SAE form the basis of LTE.

• LTE is IP-based; it brings reduced latency, better spectrum efficiency and flexibility, larger and more efficient cell sizes and access independence.

• Release 8 provides for full inter-working with legacy standards (GSM, the Universal Mobile Telecommunication System (UMTS™), Code Division Multiple Access (CDMA), Time Division Synchronous CDMA (TD-SCDMA)).

The first quarter of 2009 will see the finalisation of thesespecifications and, in parallel, work on Release 9 willgather momentum, preparing the way for LTE-Advanced,the 4th generation technology which will be an evolutionof LTE.

One of the big pluses with LTE is that operators can staywith their current technology if they so choose –upgrading with EDGE or with HSPA equipment. There is astrong business case for operators to upgrade existingequipment, while installing LTE-ready parts in the networkat the same time. This way the eventual switch to LTE willbe virtually seamless. LTE is attracting global industrysupport. It is a natural evolution choice for GSM/HSPAnetwork operators and is also the next generation mobilebroadband system preferred by many leading CDMAoperators.

Other DevelopmentsEvolved EDGE (EDGE+)EDGE+ reached full maturity with the completion of 3GPPRelease 8 in December 2008. With its increased spectralefficiency, better coverage and data rates, EDGEcompares favourably with 3G networks. Analysts predictthat EDGE subscribers will grow in parallel with HSPA andLTE deployments in the coming years.

Evolved High-Speed Packet Access (HSPA+)HSPA was an upgrade to existing UMTS radio accessnetworks, employing new modulation techniques,reduced radio frame lengths and new functionalitieswithin radio networks. As a result, throughput increasedand latency has been reduced. By the end of 2008,specifications for HSPA+ were completed in Release 7and Release 8 of the Standard – providing the potentialfor a three-fold increase on bit rate delivered by earlyHSPA equipment.

FemtocellsConsiderable effort was expended in 2008 on the HomeNode B (also known as Femtocell) specification, which willallow relatively inexpensive improvements in networkcoverage by placing what amounts to a UMTS (or LTE)base station on customer premises to provide radiocoverage for a single household. Backhaul to the corenetwork is via the customer’s existing ADSL connection.Although simple in concept, the practicalities of HomeNode B realisation are far from trivial, and substantialanalysis of architecture, signalling traffic patterns andsecurity is being undertaken.

InterworkingThe interworking and handover between the various radio access technologies (GSM/EDGE, UMTS, HSPA, LTE, …) is crucial and is receiving considerable attentionin 3GPP. Similarly, the interworking between circuit-switched and packet-switched domains – includingbetween the Mobile Application Part of Signalling SystemNo. 7 and connections based on the Session InitiationProtocol (SIP) – is currently being addressed.

IMSOriginally designed to deliver Internet Protocol (IP)multimedia to mobile users, IMS is becoming a corecomponent within 3G, cable TV and next generation fixedtelecommunications networks. Following agreementbetween 3GPP and ETSI’s Telecommunication andInternet converged Services and Protocols for AdvancedNetworking Technical Committee (TC TISPAN) on theharmonisation of a common core IMS, the transfer of theIMS specification work from TC TISPAN into 3GPP wascompleted during 2008. This will ensure that IMScontinues to develop without fragmentation of thesystem.

LTE-AdvancedWith the ITU’s call for systems beyond3G (IMT-Advanced), 3GPP has agreed aset of requirements for enhancements toLTE to deliver a 4th generation radiointerface technology. Work is nowstarting on detailed specifications, withmost of the output expected in 3GPPRelease 10.

10

Next Generation Networks (NGN) are a response to theconvergence of fixed and mobile telecommunicationsservices and data networks. The general idea behind thetechnology is that one network will transport allinformation and services (voice, data and all sorts ofmedia) by encapsulating them into packets in the sameway as they are on the Internet. In effect, NGN addmobility to Triple Play services (Voice, Internet and TV) andthe opportunity for further bundling of high revenueservices for customers.

At the core of the harmonised ‘All-IP’ NGN is the IPMultimedia Subsystem (IMS), developed by the ThirdGeneration Partnership Project (3GPP™), which providesan ‘access independent’ platform for a variety of accesstechnologies.

The market needs to avoid proprietary NGN solutions,fragmentation and interworking problems and looks toETSI’s Telecommunication and Internet convergedServices and Protocols for Advanced NetworkingTechnical Committee (TC TISPAN) for standards-basedanswers. TC TISPAN has the backing of operators,vendors, service providers and research and governmentrepresentatives. It provides the definition of NGNsprincipally from a European viewpoint, but 20% ofparticipants come from outside Europe. ETSI’s NGNspecifications are now widely considered as the globalNGN solution.

The TC’s major achievement of 2008 was completion ofNGN Release 2, with specifications for Internet ProtocolTelevision (IPTV), corporate networks and home networks.

IPTVETSI’s activities on IPTV cover the critical elements of theIPTV ecosystem – the customer network, the serviceprovider network and media content distribution – withthe aim of ensuring interoperability and interworkingbetween equipment vendors, network service providersand media content distributors.

Release 2 includes specifications for the integration ofIPTV services in the NGN architecture. Two possiblesolutions have been defined. In the first, a Dedicated IPTVSubsystem focuses on the integration of existing marketsolutions in an NGN environment. With this, networkservice providers benefit from the cost advantages of anNGN network without the need for significantmodification of their current IPTV service. The secondsolution, IMS-Based IPTV, allows the blending of TVservices with other telecommunication services (such asvoice, presence and data services), enabling networkservice providers to reap the full benefit of the IMSarchitecture while providing key end-user services.

In 2008 ETSI set up a new Media Content DistributionTechnical Committee (TC MCD) to address issues offragmentation of content distribution across platformssuch as IPTV, web TV and mobile TV.

Corporate NetworksTC TISPAN completed its work on corporate networks,publishing specifications for hosted enterprises andbusiness trunking services and defining the interactionscenarios between core and enterprise networks. A guidehas been produced to ease the implementation of theseservices.

Home networksWith the completion of work on Customer PremisesNetworks in 2008, all key features are now defined toallow NGN to be deployed into the home in aninteroperable manner. The latest specifications approvedallow first the connection of the Customer PremisesNetwork to an NGN and then the enabling of IPTVservices in the Customer Premises Network.

IMSIn 2008, following agreement between TC TISPAN and3GPP on the harmonisation of a common core IMSfunctionality, specification of the IMS was successfullytransferred from TC TISPAN to 3GPP. This will ensure thatIMS continues to develop without fragmentation of thesystem.

Release 3Work has now started in earnest on Release 3. Its mainfeatures are likely to include consolidation of Voice over IP(VoIP) (including Quality of Service, security andinterworking), evolution of the IPTV Service (blendedservices), Ultra Broadband (fixed and wireless) access tothe NGN, interconnect (naming, numbering) of both theIMS and non-IMS, and network harmonisation. Release 3may also offer increased network resilience androbustness.

Good progress was achieved in 2008 on the specificationsfor new IPTV services, network interconnection and RFIDsecurity. For example, TC TISPAN has already defined thenew services’ requirements for IPTV which include Peer-to-Peer, advertising, IMS enabled IPTV Roaming/Mobility,User Generated Content (UGC), Personalised Channel(PCh)/User oriented content and Content DeliveryNetwork (CDN) architecture.

Network interconnection work also began in 2008. It hasbeen agreed with interested parties that ETSI should co-ordinate and supervise standardisation work related toNGN interconnection, and that the GSMA IPX (IPExchange) model for the inter-operator IP backboneshould be taken as a reference model. 3GPP will defineeverything related to IMS while ETSI is responsible forNGN aspects. TC TISPAN has now embarked onhierarchical work which will provide an overview andanalysis of the topic. Further collaboration with other fora,especially the GSM Association (GSMA), is foreseen tomeet commercial requirements.

Next Generation Networks

11

With the steady development of information andcommunications technologies (ICT), new and diverseapplications are flooding the market. ICT in the home arenow becoming more complex than the office; on-linegaming, social networking, freeware and Open Sourcesystems for hobbies, for example, are opening up excitingnew opportunities for social and leisure use – and themarket is booming.

In the past, technical innovation tended to originate in themilitary and academic arenas; now, in a complete reversal,consumer demand is leading the drive for new productsand services. The customer is playing a more collaborativerole in new developments. Inevitably this raises issues forhuman factors. Security and personalising the way usersconnect with products, for example, are critical inachieving eInclusion and eAccessibility, particularly whenusers’ needs are different from those of the majority.

ETSI’s activities in this area are the responsibility of itsHuman Factors Technical Committee (TC HF) which strivesto ensure that the needs of all users, including those whoare older, young or disabled, are considered. TheCommittee has developed an international reputation forits work.

TC HF is working on general user profile management,aimed at producing a standard on settings, values andoperations related to personalisation. This is targeted atdevelopers and manufacturers which provide services anddevices that can be personalised by their customers. ATechnical Specification is also being prepared onarchitectural issues related to networks, terminals andsmart cards.

ETSI supports the European Commission (EC) in itsconcern for the human aspects of ICT as it affects equalityand diversity in building society. Specific issues tackled in2008 include the collaborative work between ETSI, theEuropean Committee for Standardisation (CEN) and theEuropean Committee for Electrotechnical Standardisation(CENELEC) to examine the impact of EC Mandate 376 onprocurement and the accessibility of ICT.

With ever greater numbers of ever younger children nowaccessing the Internet on a daily basis through a host ofnew applications, children’s use of ICT is a major concern.In 2008 ETSI made a significant contribution to thesafeguarding of children and young people with thepublication of a guide to provide advice on the delivery ofservices to children.

ETSI’s ongoing work on health and care services is alsonow focussing on the personalisation of services. Inparallel with its general user profile managementactivities, ETSI is working on user profile managementspecifically for health and care services.

Work also continues on multicultural studies, aimed atremoving or reducing cultural barriers that can excludepeople from communicating.

Standardised communication with assistive mobiledevices improves the quality of life for millions of disabledcitizens in the European Union, and opens upopportunities for Small and Medium-sized Enterprises(SMEs) producing such devices. In August 2008, ETSIpublished a Technical Specification which sets out therequirements for a number of Assistive Technologycommands that can be used to enable assistive devices tointerwork with mobile terminals.

Work is also being undertaken on ICT and cars, examininghow we use communication services while in a vehicle andidentifying where guidelines are needed. This projectaddresses the potential dangers of driver distraction andthe consequential impact that this can have on roadsafety. Although the focus is on users’ needs andapplications in this area, the work is also expected toopen up new service opportunities.

Work is now beginning on eServices – increasing accessto new user interaction technologies. In the past, theneeds of people with disabilities have always laggedsignificantly behind the initial availability of innovative newtechnologies which have tended to be developed for andtargeted at mainstream consumers and frequently atclosed target groups of early adopters. Subsequentmeasures to accommodate users with impairments havebeen late and costly. Unless a different approach is taken,the introduction of emerging interaction technologiessuch as ambient intelligence and ubiquitouscommunications and others enabled by next generationmobile networks could follow the same pattern. As withall devices and services, the aim is to have the specificrequirements of elderly users and users with disabilitiestaken into account prior to the large-scale introduction ofthe technologies, in a true ‘Design-for All’ approach.

However, current guidance to device manufacturers andservice providers focuses on existing technologies. ETSI istherefore embarking on an analysis to anticipate thedemands of emerging technologies and is developingappropriate guidelines.

The Consumer is King

12

Electronic SignaturesIn 2008, ETSI completed its work on digital accounting insupport of the European Commission’s drive to establishcross-border public services in the Single Market. Digitalaccounting is fundamental to boosting the advent ofpaperless accounting documentation (such as eInvoicing),and will increase business efficiency and reduce thepotential for fraud.

Work on Registered e-Mail (REM), aimed at providing aframework for origin authentication, proof of delivery andlong term availability, is progressing well. This work offersenormous potential with varied applications.

Work aimed at creating a new version of the specificationon the interoperability framework for XML AdvancedElectronic Signature (XAdES) began in April 2008. This willaid interoperability for the mutual recognition ofadvanced electronic signatures, help achieve theirwidespread use and address new technologicaldevelopments such as the use of e-signatures in mobilecommunication. The work is being undertaken in co-operation with the Electronic Commerce PromotionCouncil (ECOM) of Japan.

In a major new initiative, ETSI is developing a profile for abasic variant of advanced electronic signatures in PDFwhich is compatible with the existing features of PDFsignatures. PDF, the most widely used digital documentformat, with its new ISO 32000 standard status, has beenrecognised as a valid file format for qualified signatures(PDF/A) in several European Member States and in Japan.ETSI is creating a new specification which will represent ageneral consensus on the use of these signatures andhence provide a reliable basis for maximisinginteroperability.

GridWith the publication of two specifications and a report onICT Grid interoperability gaps, ETSI’s Grid TechnicalCommittee (TC GRID) produced its first deliverables in2008. Grid technology embodies a vision of interoperableelements ranging from small devices up tosupercomputers, connected by global networks andcapable of supporting communities ranging fromindividuals to whole industries. Standardisation is essentialto enable many different pieces of hardware, software,operating systems, data storage systems, networks etc. tointeroperate in the delivery of complex applications.ETSI’s experience in interoperability is proving invaluablein Grid standardisation.

Railway TelecommunicationsThe spread of GSM-R – the new wireless communicationsplatform developed specifically for railways, based onGSM™ – continued unabated in 2008, rolling out acrossall five continents. The technology has now reached 60%of the rail lines in Europe, where it covers 140 000kilometres of track. In Europe, GSM-R is being combinedwith the General Packet Radio Service (GPRS) to form thebasis of an Intelligent Transport System to offer railwaysthe means to improve the efficiency of their operationsand provide opportunities for new services to users. Withroaming agreements in place in France, the Netherlands,Germany and Belgium, cross-border freight traffic isrunning freely in Europe. By 2010 GSM-R on border-crossing trains will also be available on passenger trains allover Europe.

Continuing work on Direct Mode Operation (DMO) withinGSM-R is a major breakthrough evolution of GSM-R; itanswers not only the requirements of railways identified inthe European Directive on Safety in Railway Tunnels butalso offers the possibility of fulfilling PMR requirements forthe emergency services.

After major developments with GSM-R in recent years,there was an emphasis in 2008 on ensuring thecompatibility of equipment, particularly to ensure theinteroperability of communications on the trans-Europeanrail system. As well as expanding geographically, GSM-R isadding new features to cope with the growing demandsof users, and frequency bands are being extended.

On the spectrum front, ETSI produced a Technical Reportwhich provides information on additional Private MobileRadio (PMR)/Public Access Mobile Radio (PAMR) spectrumrequired for use by railway operators in the duplexfrequency band 873 - 876 MHz paired with 918 - 921 MHz.One of the applications requiring additional spectrumresources is the European Train Control System (ETCS),which releases the train driver from a number of controlactivities, thereby reducing the risk of human error. Arequest for appropriate spectrum is now underconsideration.

13

Technical Breakthroughs

Improving Air Traffic ManagementIn close collaboration with the European Organisation forCivil Aviation Equipment (EUROCAE), ETSI is working onnew ‘Community Specifications’ intended to ensure aninteroperable European Air Traffic Management Network(EATMN). Community Specifications are EuropeanStandards that may be used to give presumption ofconformity to the Single European Sky (SES)Interoperability Regulation. In 2008, the first of thesespecifications, Part 1 of a four-part EN on AdvancedSurface Movement Guidance and Control System (A-SMGCS), was completed; work is ongoing for the otherthree parts. Work also continues on a specification forAirport Collaborative Decision Making (A-CDM), aimed atimproving airport operations by ensuring that airportpartners (such as airports, airlines and air trafficcontrollers) all receive relevant and accurate informationon time. It is envisaged that a new technical committeewill be created in 2009 to address aeronautical matters.

Radar Level GaugingETSI has produced a new Technical Report on radar levelgauging applications in still pipes, covering theapplication of Tank Level Probing Radar for use in‘floating roof tanks’. Floating roof tanks are often used inpetroleum refineries and storage plants. Measurements ofoil quantities must be accurate to ensure accurate billing.The Report demonstrates that the radar energypropagating inside the pipe has limited leakage to theoutside of the tanks, and conformance to applicablestandards can be achieved. Work has now begun todevelop the requirements and a Technical Specification isexpected to be completed in 2009.

A new EN governing the use of radar to measure, forexample, the water level in rivers, is also beingdeveloped. A spectrum request has already beensubmitted to CEPT.

Satellite CommunicationsIn 2008, ETSI was at the centre of work on important newstandards for worldwide applications using satellite formobile and fixed communications.

Activities in this area included completion of a significantupdate to the GMR-1 Release 2 technical specifications (Geo Mobile Packet Radio Service (GMPRS-1)) and a newspecification for the Connection Control Protocol (C2P) forDigital Video Broadcasting – Return Channel by Satellite(DVB-RCS). Work has now started on a new set of GMR-1Release 3 specifications (GMR–1 3G) and is proceeding wellwith the preparation of specifications for the ‘Family SL’satellite radio interface.

Harmonised Standards concerning the IMT-2000 frequencybands allocated to Mobile Satellite Services are nearingcompletion; this work has been extended to include bothwideband and narrowband systems. In addition, a technicalreport containing a detailed analysis of advanced mobilesatellite system architecture in the context of Beyond 3G and4G systems has been initiated.

New Generation DECT™ETSI is responding to the evolution of the fixedcommunication network which is moving to a newgeneration – Next Generation Networks (NGN). Voiceover Internet Protocol (VoIP) and IP-based value-addedservices are already generating new services for the end-user – and new revenues for suppliers and operators. Asthe dominating technology for the in-home distribution ofvoice services, Digital Enhanced CordlessTelecommunications (DECT) is also moving to a newgeneration especially scaled for Next Generationcommunication networks – ’New Generation DECT‘.

In 2008, ETSI finalised Part 3 of the New Generation DECTspecification. This includes a number of additionalfeatures, such as several supplementary services and anew ‘no emission’ mode, which provides the ability todeactivate all radio transmissions. Part 3 also offersimproved audio quality, easy pairing (it works like a sort of‘plug and play’ for DECT), and multiple calls and multiplelines for more complex systems. New Generation DECTwill become an integral part of home gateways, sointeroperability is an important driver for thesestandardisation activities.

New long term work on DECT-Advanced began in 2008,preparing specifications for the InternationalTelecommunication Union (ITU) for the evolution of NewGeneration DECT. DECT-Advanced will offer even moreservices, which require higher speed and throughput fortransmission, video will have higher resolution and real-time services will be available. A completely new physicallayer is required for DECT which will provide much higherbit rates and greater efficiency, fulfilling the requirementsof IMT-Advanced.

14

The ultimate aim of standardisation in information andcommunications technology is interoperability. This issuecannot be addressed simply at the end of the standards-making process; it is a thread that should run through theentire standards development process, and testingprovides vital feedback into standardisation activities.

ETSI’s approach is to produce base standards and testspecifications in parallel, with the base standardsdesigned with interoperability in mind. There are twocomplementary forms of testing: conformance testingand interoperability testing.

In 2008 ETSI’s Centre for Testing and Interoperability (CTI)consolidated its leading position in the provision ofsupport to ETSI with the development of testspecifications and the organisation and running ofPlugtests™ interoperability events.

CTI provided hands-on technical support to ETSI’stechnical bodies in the production of test specificationsfor ETSI Detect and Avoid (DAA) standards, ThirdGeneration Partnership Project (3GPP™) handsets (airinterface), Next Generation Networks (NGN) (IMS/SDPand IMS/NNI), HiperMAN/WiMAX and IntelligentTransport Systems (ITS). Other activities included the

development of a testing framework for GRIDtechnologies and contributions to Model-Based Testingmethodologies (MBT).

CTI also organised 15 ETSI Plugtests events in areasranging from the IP Multimedia Subsystem (IMS) andsecurity (XAdES), through aeronautics (Air TrafficManagement – Voice over IP (VoIP)) to Business-2-Business (B2B) and automotive (V2X) communication. TheXAdES Plugtests event represented a particular landmark– it was the Centre’s first truly remote event with allparticipants logging in to an ETSI server to perform thevarious testing scenarios.

Under the ETSI Interopolis™ brand, CTI also providedcommercial customer services related to testing,including the organisation of three interoperability events.

Sharing ExpertiseETSI’s core work is the creation of standards for both theEuropean and global markets, a task that has led to theaccumulation of an enormous wealth of expertise insupporting diverse technical areas. In addition to makingthis expertise available to its own Members, ETSI has acommercial service-providing role, and makes itsexpertise available to other organisations as well.

15

Testing and Interoperability

Forapolis was established within ETSI to provide effectivesupport to any forum orconsortium involved in relevanttechnical specification activities

– whether with the participation of ETSI Members or not.Its services include process management and support forIT, logistics, meetings, legal and financial requirements,marketing and communications. In this way, Forapolisserves as a facilitator for ‘growing ideas’.

In 2008, in a move which demonstrated its customers’satisfaction with its services, a number of contracts wererevised and enhanced. Forapolis’ customer and serviceportfolio now includes:

• Open Mobile Alliance (OMA)• The Home Gateway Initiative (HGI)• Next Generation Mobile Networks (NGMN)• The Global Certification Forum (GCF)• The Open IPTV Forum• ECC (ERO – European Radiocommunications Office)

Sales activities became more proactive in 2008. Severalnew proposals were offered and contact was establishedwith about 15 other potential customers. However, thecurrent general economic situation and the poor Euro-Dollar exchange rate did not provide a favourable salesclimate in 2008 and, with the industry experiencing adifficult financial situation too, this seems unlikely toimprove much in 2009.

The strategy ofpresenting Forapolistogether with its

companion service, Interopolis, has proved particularlyeffective, as many fora which do not use Forapolis formanagement services are seeking the services ofInteropolis. There are few other organisations that canmatch ETSI’s expertise in this area and Interopolis isalready highly regarded.

Interopolis complements Forapolis and serves as aproduct-enabling service, offering customers: testmethodology & development; test tool engineering;pragmatic operational interoperability initiatives(including Plugtests interoperability events); training (for example in testing methodologies and best practice); and technologies validation.

The Interopolis family of services was only born at thebeginning of 2008, but all aspects of the service were indemand during the year and several offers were made.One key achievement was the successful negotiation of acontract on test methodology platforms. This was a newactivity introduced to the Interopolis portfolio, building onETSI’s reputation for test suite development and theorganisation of interoperability events, which once againin 2008 proved extremely successful with key customers.

Together, Forapolis and Interopolis offer complete ‘Ideato Product’ solutions to support standardisation activities,from market requirements to placing products or serviceson the market.

Partnership AgreementsETSI believes that international futures are built aroundinternational partnerships and has therefore built up aportfolio of agreements with partners ranging from foraand consortia, to international and regional StandardsDevelopment Organisations (SDOs). The Institute haslong recognised that working with others is the best wayto ensure coherence between the standards produced byETSI and those of others and to avoid the duplication ofeffort. At the same time it ensures that its standards are ofa consistently high quality and are widely accepted andimplemented.

ETSI currently has over 70 such Partnership Agreements.During 2008, the Institute undertook a review of itspartnership activities, and its portfolio was extended. NewMemoranda of Understanding (MoUs) were signed withthe Continua Health Alliance, the WiMedia Alliance, theNear Field Communication (NFC) Forum and SatLabs, theInstitute entered into a Co-operation Agreement with theFixed Mobile Convergence Alliance (FMCA) and a Letterof Intent (LoI) was signed with the Software Defined Radio(SDR) Forum. The partnerships with the NATOStandardisation Agency, the Asia Pacific Telecommunity,ERTICO ITS-Europe, the China CommunicationsStandards Association (CCSA) and ECMA Internationalwere also renewed. Some of these new agreements arethe direct result of ETSI’s diversifying technical interestswhich are attracting attention in new quarters.

Together with its sister European SDOs, the EuropeanCommittee for Standardisation (CEN) and the EuropeanCommittee for Electrotechnical Standardisation(CENELEC), ETSI also signed an MoU with the PanAmerican Standards Commission (COPANT), and aFramework Co-operation Agreement with theStandardisation Administration of the People's Republicof China (SAC).

Extending ETSI’s Geographical FootprintThe dialogue with Asia, and with China in particular,continued to be high on ETSI’s agenda in 2008. Theagreement with SAC brought to three the number ofcollaborative partnerships in the region (along with theChina Communication Standards Association (CCSA) andthe China Electronics Standards Institute (CESI)).Following the signature of the MoU with CESI in 2007, inOctober 2008 ETSI organised a one-day meeting,followed by a workshop on ‘RFID - the Internet of Things’in Beijing in November, under the aegis of the EU-ChinaInformation Society Project. Further activities are nowplanned.

Activities in China have been supported by the SecondedEuropean Standardisation Expert in China, who is wellestablished now and is successfully promoting CEN,CENELEC and ETSI, the European Commission (EC) andthe European Free Trade Association (EFTA). A EuropeanUnion/China Standards Information Portal is also beingconsidered.

Elsewhere, resources were focussed on emerging marketregions such as India and Brazil. The MoU with COPANTin particular positions ETSI in the rising pan-Americanstandards market and gives the Institute an importantpartner in the area. A similar partnership with theStandardisation Association of MERCOSUR (AMN) isexpected to enter into force in 2009.

The Third Generation Partnership Project (3GPP™) held aProject Co-ordination Group/Organisational Partner(PCG/OP) meeting in another emerging market in 2008 –this time in Moscow, Russia. The meeting and theassociated workshop attracted huge interest and havelaid a solid basis for future activities in this fast growingcountry.

Research & DevelopmentETSI is also looking to develop new partnerships withresearch and academic institutions; involvement in R&D atthe earliest stage puts the Institute in an ideal position toidentify new standardisation needs. The MoU with theEuropean Research Consortium for Informatics andMathematics (ERCIM) connects ETSI to a network ofEuropean research institutes and helps build strong linkswith the research community. ETSI is also working with theEC’s Joint Research Centre (JRC).

OutreachSupport of events and communications activitiescontinued, despite the challenging effects of the currentglobal economic climate. Some 40 external events weresupported in 2008, with an exhibition stand, the provisionof speakers or endorsement. In addition, ten workshopswere organised during the year on a variety of topics fromRFID to NGN standards, the Wireless Factory to theSingle European Sky and including ETSI’s major annualSecurity event in January 2008.

A third edition of the ETSI White Paper ‘AchievingTechnical Interoperability – the ETSI Approach’ waspublished in April 2008 and a second edition of theSecurity White Paper was produced in October 2008.

Co-operation, Collaboration and Outreach

16

45%

10%10%7%

5%

23%

Global

South America

Asia Pacific

North America

Rest of the World

European Union

Partnerships by region in 2008

17

Standards Production1 463 standards and reports were published in 2008. By the end of the year, ETSI had published a total of over 21 000 standards, specifications, reports and guides since the Institute was established in 1988.

3 000

2 750

2 500

2 250

2 000

1 750

1 500

1 250

1 000

750

500

250

Publication Forecast

18 49185 175

273

544

760

637

869 897

1 725

2 172

2 474

1 812

1 394

2 317

1 640

1 463

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2 000

2009

1 939

The number of deliverables published, for each of the years 1990 – 2008 and the prediction for 2009.

Distribution by type of published document

Technical Specification (TS)1

Technical Report (TR)2

ETSI Standard (ES)

European Standard (telecommunications series) (EN)3

ETSI Guide (EG)

Special Report (SR)

TTOOTTAALL

IInn 22000088

1 215

87

97

52

8

4

11 446633

TToottaall ssiinnccee 11998888

14 280

2 009

584

4 208

205

57

2211 334433

1 Includes GSM Technical Specification (GTS)2 Includes old deliverable types: Technical Committee Technical Reference Report (TCR-TR), Technical Committee

Technical Report (TC-TR) and ETSI Technical Report (ETR)

3 Includes amendments and old deliverable types: European Telecommunication Standards (ETSs), Interim ETSs (I-ETSs) and Technical Bases for Regulation (TBRs).

Specialist Task Forces and other Funded Projects

18

Specialist Task Forces (STFs) are groups of highly skilled experts sent by ETSI Members to work together for limitedperiods to perform specific technical work under the direction of an ETSI committee. A similar mechanism has beenadopted to support ‘funded projects’ for the Third Generation Partnership Project (3GPP™) partners and for theEuropean Commission (EC) and the European Free Trade Association (EFTA).

TTEECCHHNNIICCAALL AARREEAA

Human Factors (HF) (EC/EFTA funding)

3GPP TTCN test specifications (3G partners funding)

Broadband Networks (ETSI/WiMAX Forum co-funding)

FP7 projects (EC/EFTA funding)

Next Generation Networks (TISPAN)

Electronic Signature Infrastructure (ESI)

Digital Enhanced Cordless Telecommunications (DECT™)

Grid

Satellite Earth Stations & Systems (SES)

Methods for Testing & Specification (MTS)

Smart Card Platform (SCP)

Other areas

TTOOTTAALL FFUUNNDDEEDD

3GPP experts free of charge (equivalent value)

ETSI Members experts free of charge (equivalent value)

TTOOTTAALL EEFFFFOORRTT

k€

940

750

667

111

504

189

138

137

108

107

63

266

3 980

290

370

4 640

Technical areas in which resources were invested

ETSI Funded Work Programme 32%

EC/EFTA 31%

3GPP partners 16%

3GPP free of charge 6%

Funded Work Programme free of charge 8%

ETSI Members voluntary 7%

The EC and EFTA contribution to the ETSI standardisation infrastructure for 2008 was set at 2 722 k€ via the Operating Grant.

The EC/EFTA contribution for specific standardisation contracts under their 2008 budget line provided funding of morethan 2 M€ to support the EC’s ICT 2008 Standardisation Work Programme: the different actions will be performed from2009 through into 2011. Ten successful proposals were made in 2008 and the related action grants were all signedbetween October and December 2008.

The new Framework Partnership Agreement has been negotiated with the EC and will be signed by both parties in early 2009.

Funding sources in 2008

EC/EFTA funding

Altogether, 55 STFs and other funded projects were active during 2008, involving 155 experts and representing aninvestment of over 4,6 M€.

Continuing the trend of recent years, ETSI Membershipincreased again in 2008 to bring the total number ofMembers to 724. This represents a rise of over 7% on2007, reflecting in part the widening range of activitiesbeing undertaken in ETSI. The growth in the number ofresearch bodies joining ETSI is particularly significant.

At the end of the year, ETSI had 574 full Members drawnfrom 41 European countries. The total number ofcountries represented in all categories of Membership is62, drawn from five continents. In 2008, AssociateMembership stood at 117, representing 22 non-Europeancountries and provinces, and there were 33 Observers.

While Associate Members are mainly interested in majorwork areas such as Next Generation Networks and mobiletelecommunications, in 2008 there was an influx of FullMembers keen to participate in new activities in, forexample, Reconfigurable Radio Systems and QuantumKey Distribution.

The European Commission and the European Free TradeAssociation Secretariat, which hold special roles asCounsellors, attend the General Assembly and the ETSIBoard and continue to play an active part in ETSI's work.

Widening membershipIn 2008 ETSI adopted a strategic policy to extendparticipation in its work, and the growing interest inmembership by Small and Medium-sized Enterprises(SMEs), micro-enterprises, universities and public researchbodies is therefore encouraging. Numerically, they nowrepresent almost a third of the Institute's membership.There was a particularly marked rise in the number ofmicro-enterprises, research organisations and universities.

19

Membership

6622 CCOOUUNNTTRRIIEESS OORR PPRROOVVIINNCCEESS IINN TTOOTTAALL 772244

2004

2005

2006

2007

2008

0 50 100 150 200 250 300 350 400 450 500 550 600

486

505

506

520

574

Evolution of ETSI Full Membership

Overall Membership by country/province

Membership by type

Full and Associate Membership by category

01-01-2008 31-12-2008

Full Members 520 574

Associate Members 118 117

Observers 37 33

TTOOTTAALL 667755 772244 Administrations 60 (8,68%)Manufacturers 313 (45,30%)Network Operators 87 (12,59%)Service Providers 58 (8,39%)Users 33 (4,78%)Consultancies 44 (6,37%)Research Bodies 60 (8,68%)Others 21 (3,04%)Other Government Bodies 15 (2,17%)

Albania 1Andorra 1Australia 2Austria 11Belgium 22Bosnia Herzegovina 2Brazil 3Bulgaria 3Canada 9China 7– Taiwan (Province of China) 12Croatia 4Cyprus 2Czech Republic 5Denmark 19Egypt 1Estonia 2Finland 15France 78Former Yugoslav Republic of 1

MacedoniaGeorgia 1Germany 101Greece 7Hungary 6Iceland 1India 5Iran 1Ireland 14Israel 6Italy 34Japan 6

Jordan 1Korea 1Latvia 1Lesotho 1Lichtenstein 1Lithuania 1Luxembourg 6Malaysia 2Malta 2Netherlands 26Norway 10Poland 6Portugal 2Qatar 1Romania 4Russian Federation 8Serbia 1Singapore 1Slovakia 3Slovenia 4South Africa 3Spain 19Sweden 22Switzerland 26Turkey 6Ukraine 3United Arab Emirates 2United Kingdom 117United States of America 61Uzbekistan 1Yemen 1

Participation of SMEs, micro-enterprises, universitiesand public research bodies

SMEs 145Universities/Public research bodies 47Micro-enterprises 46Other 486

Financial Situation

20

Budget MaintenanceIn total, compared with 2007, income and expenditureincreased by 13% or 2,9 M€. However the result of theyear is a deficit of 97 k€ due to high expenses in ITsoftware development which were not initially fullybudgeted.

The key points of the budget management, comparedwith 2007, are the following:

Expenditure – Secretariat costs increased by 16% (butwere 0,8% less than budgeted) mainly due to IT softwaredevelopments and the recruitment of additional staff fortechnical organisation support. As in 2007, 5 M€ werespent on experts’ costs for Specialist Task Forces andother standardisation related technical experts.

Income – Members’ contributions increased by 8% due tonew Members joining and existing Members increasingtheir contribution. 57% of the budget was funded byMembers’ contributions (13,3 M€). The contribution of the3GPP™ Partners (1,7 M€) remained constant. EC/EFTApayments amounted to 5,3 M€ to cover expenses relatedto the operation of the European standardisation platformand standardisation projects. Income generated bysupport services supplied to fora and consortia (Forapolisand Interopolis™) amounted to 2,6 M€ (a 20% increase).

Financial Statements for the Year 2008

AssetsSummary of the Balance Sheet

Liabilities

NNeett aammoouunnttss aatt:: 3311 DDeecc 22000077 ((€)) 3311 DDeecc 22000088 ((€))

Fixed Assets 6 908 609 6 658 696

Debtors 14 641 812 14 562 019

Securities/cash 6 741 469 9 764 255

Adjustment accounts 145 329 172 858

TTOOTTAALL AASSSSEETTSS 2288 443377 221199 3311 115577 882266

NNeett aammoouunnttss aatt:: 3311 DDeecc 22000077 ((€)) 3311 DDeecc 22000088 ((€))

Equity 8 278 661 8 278 661

Provisions 150 000 200 000

Balance carried forward 0 -96 616

Creditors 6 930 785 8 872 141

Adjustments 13 077 773 13 903 640

TTOOTTAALL LLIIAABBIILLIITTIIEESS 2288 443377 221199 3311 115577 882266

Income k€

Members’ contributions and Observer fees 13 291

EC/EFTA contracts 5 312

3GPP Partners 1 686

Voluntary contributions 498

Forapolis/Interopolis 2 626

European Friends of 3GPP 711

Sales 300

Plugtests™ 223

Financial income 418

Other income 198

TTOOTTAALL IINNCCOOMMEE 2255 226633

Expenditure k€

Secretariat staff costs 11 816

Other Secretariat costs 7 355

Special Projects 213

European Friends of 3GPP 497

Provision and losses 439

Experts costs 5 040

TTOOTTAALL EEXXPPEENNDDIITTUURREE 2255 336600

2008 Budget Statements

Statement of Income and Expenditure Year 2008

The final accounts and the balance sheet are summarised below. The fiscal accounting period is 1 Jan. – 31 Dec. 2008.

The management of the finances of ETSI is described by• the budget report• the financial statements (balance sheet and income and expenditure statement) which are established according to

French laws and regulations.

Mr Philippe Aumeras, nominated auditor by the 43rd General Assembly, has audited the 2008 ETSI accounts andcertified that the annual financial statements are true, sincere and give a fair view of the activities carried out during thepast financial year.

In 2008, there was a deficit of 97 k€.

There was a deficit of 96 616 € in 2008.

Income (€) Expenditure (€)

Income 24 737 652Purchases 12 565 996Expenses 12 756 705

Investment management 452 716 30 771

Extraordinary income & expenses 72 664 6 176

TTOOTTAALL 25 263 032 25 359 648

Figures are rounded to the nearest €.

• Air Traffic Management• Broadband Wireless Access• Broadcast• DECT™• Digital Mobile Radio• eHealth• Electromagnetic Compatibility• Emergency• Environmental Aspects• Fixed-line Access• Grid• Human Factors• IMS Network Testing• Intelligent Transport• Interoperability• Machine-to-Machine Communications • Maritime Communications• Media Content Distribution• Medical• Mobile• Next Generation Networks• Open Service Access• OSS• Powerline• Protocol Specification• Quality of Service• Quantum Key Distribution• Radio• Reconfigurable Radio Systems• Regulation & Legislation• Safety• Satellite• Security• Smart Cards• Testing• Terrestrial Trunked Radio (TETRA)

DECT™, Interopolis™, LTE™, Plugtests™, UMTS™ and the ETSI logo are trade marks of ETSI registered for the benefit of itsMembers. 3GPP™ is a trade mark of ETSI registered for the benefit of its Members and of the 3GPP Organisational Partners.GSM™, the Global System for Mobile Communication, is a registered trade mark of the GSM Association.

Published in April 2009.Produced by Kingston Public Relations Ltd, UK (+44 1482 876229) www.kingstonpr.com

European Telecommunications Standards Institute06921 Sophia Antipolis Cedex, France

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