future of communications
the individualized communications experience
Detlev J Otto
Nokia Siemens Networks
Head of Technology
Customer Operations
December 2010, Pune, India
© Nokia Siemens Networks
Today: communications is changing
applications ÅÆ user experience ÅÆ network impact
2
Copyright 2007 NSN Siemens Networks. All rights reserved.
INTERNAL USE ONLY
Internet of things
Smart
Objects
2020: 50 bln connections
Smart
Devices
Smart
Phones
2010: 6 bln connections
3
© Nokia Siemens Networks
Internet of things
The revolution has just begun
In every single second in 2010
5 Subscriptions
to a mobile
290Applications
downloaded to a smart
broadband network
phone or smart device
8 Smart phones
connect first time
to the Internet
4
© Nokia Siemens Networks
OpenMobileSummit 2010
11/08/2010
Individual taste –
Communal context
Individualisation
& socialisation:
My
Friends
My-Tech NOT
high-tech
My
\
Groups
My Virtual Assistant
My
Services
My
Identities
My
smart
Objects
My
Devices
5
© Nokia Siemens Networks
OpenMobileSummit 2010
11/08/2010
A multitude of smart devices –
connected anywhere, anytime
Virtual conference
room
Body
sensors
eMeters
Body
sensors
Smartphones
Machines
Smart
Glasses
© Nokia Siemens Networks
3D HDTV
Tablets
Tablets
6
Smart
Oven
Cars
Individualization and communities
Communities
at work
Individualized
entertainment
Share
location
Communities
at work
Sharing with
friends
Individualized
advertisement
7
© Nokia Siemens Networks
Individualized
connected objects
Social
networks
Applications and real time content from
the cloud - across all screens
Smart grid
control
HD video
conferencing
Remote health
monitoring
Mobile
payment
Augmented
Reality
Video
Sharing
3D HDTV
Streaming
Remote
Office
Home
automation
Security
HD Audio
Streaming
8
© Nokia Siemens Networks
Communication technologies enrich all
industries
Energy
Retail
Healthcare
Building
Car
Security
Transport
9
© Nokia Siemens Networks
Communication technologies enrich all
industries
Smart object enabled service market forecast *
80 Bn €
CAGR:
60 Bn €
50 Bn €
CAGR:
33%
40 Bn €
CAGR:
30 Bn €
CAGR:
25%
CAGR:
34%
CAGR:
34%
27%
20 Bn €
10 Bn €
0 Bn €
Health
Care
Retail
CAGR:
40%
2013
35%
CAGR:
29%
2010
2011
2012
Revenue per year
70 Bn €
Energy Transport Security Industrial IT &
Building
Networks
280 Bn € market in 2013 with an average growth rate of 33%
* Source Harbor Research “Pervasive Internet & Smart Services Market Forecast (2010-2013)
10
© Nokia Siemens Networks
Communication technologies are becoming
an integral part in all areas of our life
11
A multitude of
smart devices –
connected
everywhere,
anytime
Applications and
real time content
from the cloud across all
screens
Individualization
and
communities
Communication
technologies
enrich all
industries
© Nokia Siemens Networks
What does it mean for
Communication Service Providers ?
A multitude of
smart devices –
connected
everywhere,
anytime
Individualization
and
communities
More subscribers
More objects
More revenue
More
Applications
and traffic
© Nokia Siemens Networks
Monetize
growth with
extreme
efficiency
How will you
act in the new
business
environment?
Differentiate
with
individual
experience
real time content
from the cloud across all
screens
Communication
technologies
enrich all
industries
New services
New markets
New biz models
New competitors
12
Are you
prepared
for growth?
Network of One - July 2010
12/10/2010
The challenge to realize the broadband opportunities
Need for highly scalable networks @ lowest cost per bit
Voice/data revenue growth 3% YoY
broadband
data and
new
subscribers
drive growth
3.000 Bn$
1200%
Traffic growth
of 50% YoY
1000%
2.500 Bn$
Adjacent
industry
2.000 Bn$
800%
Data
Apps
Objects growth
of 40% YoY
600%
1.500 Bn$
Data
400%
Voice
200%
500 Bn$
0%
0 Bn$
2009
Source: Combined analyst data and NSN Analysis
Harbor research “Pervasive Internet & Smart Services Market Forecast”
13
© Nokia Siemens Networks
1.000 Bn$
Subs growth
of 10% YoY
2015
But there will
be a gap
between
traffic and
revenue
growth
The blueprint for an “indiversal” network
Customer & value centric - evolve to the Network of One
One
Simplified
network
14
© Nokia Siemens Networks
One
Flexible
service delivery
Network of One - July 2010
12/10/2010
One
Agile
operation
Service delivery with heterogeneous access
The network is open for any device
Transforming
lives &work
Superflat
network
for
least cost
to deliver data
15
© Nokia Siemens Networks
OpenMobileSummit 2010
11/08/2010
Transformation to a service managing network
– evolve to the Network of One.
One. simplified
network
One. unified
management
& charging
One. businessoptimized
operation
One. view
of customer data
One. convergent
service control
One. flexible
service enablement
holistic approach to boost efficiency and experience
16
© Nokia Siemens Networks
Transformation to a service managing network
– evolve to the Network of One.
All IP & flat
customer experience
& unified charging
One. simplified
network
One. unified
management
& charging
transformation from
network to service
management
One. businessoptimized
operation
identity management
R4, IMS, QoS,
DPI, EPC, …
One. convergent
service control
telco-2-Web,
SDF
One. view
of customer data
One. flexible
service enablement
holistic approach to boost efficiency and experience
17
© Nokia Siemens Networks
Future of individualized communications
Development of the “indiversal” network
Individualisation
& socialisation
Transforming
all industries
18
© Nokia Siemens Networks
Clouds:
Network is the
computer
Transforming
lives &work
Thank you.
19
Copyright 2007 NSN Siemens Networks. All rights reserved.
INTERNAL USE ONLY