True value through convergence
Mobility
Solutions
Colin Horton
Marketing Manager Europe and Africa
Residential telecoms issues
Either no coverage or…..
• Multiple providers & multiple technologies, creating…
• Multiple bills (voice & data, mobile & fixed)
• Multiple numbers
• Multiple devices
• Multiple end-user experiences
• Multiple customer care contacts
Fixed
Voice
Fixed
Data
Mobile Voice
& Data
Combined
Residential
& Mobile
Voice & Data
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2
Market Trends – Seamless
Communications!
Cable
Internet
IP Network
Video
Communications
Active
Phone
Book
Unified
Messaging
Mobile / BB
Roaming
2G/3G
Multicast
Service
Presence
and Location
802.xx
Access
iLocator
Packet
Mobile
Network
Circuit
Mobile
Network
People simply want services that fit their lifestyle and are
available anywhere, anytime.
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3
true
Global Market Trends
Tomorrow
Users
Applications
Enterprise
M-commerce
SMB
Vertical
Markets
Gaming
Consumer
Consumer
Teen/Youth
Business
Machines
Smart Phone
PDA
Web Browsing
Video
Simple Apps
Yesterday
One-Size
Fits All
Voice
Phone
Circuit
PC
Increased
Data-capable
Device
Phone
Fragmentation
Camera
Phone
Network
computers
e-Learning
Content
Connectivity
Audio
Location-based
Photos
Limited
Public WiFi
WLAN
Cable
2.5 G
WWAN
Vertical-specific
DSL
IP Core
Fiber to the
Premises
“Wireless Fabric”
3G WWAN
Computer
PAN
Devices
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Networks
4
Roadmap to NG “Lifestyle” Enhanced
Services
Expand Into Next Generation Lifestyle Services
2007
And beyond
•
•
•
•
•
•
Multimedia content services and messaging
Video telephony / conferencing
Interactive gaming
Intelligent agent services
Real-time video communication
Entertainment video on Mobiles
Converge Communication Services
’05-’06
Current Focus
•
•
•
•
•
•
•
Converge wireline/wireless telephony services 802.11/cellular
Mobile HSD (HSDPA)
Blended text and voice services
Presence enabled services. E.g. PTT Wireless/Wireline
VoIP over wireless & wireline
User profiles spanning multiple CPE devices
Unified portal service access
Migrate Existing Voice Service to VoIP
-
• IP communication services span text, voice and video services
• A unified services architecture enables converged services
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5
Mobile Market Reality Today
Quarterly Subscribers, Net Adds
1500
1300
1100
900
700
500
AT&T Wireless
Cingular
Nextel
0.2
Sprint PCS
Verizon Wireless
T-Mobile
0.15
0.1
0.05
T-Mobile
USA
Average Revenue Per User
04
2Q
04
03
4Q
1Q
03
03
2Q
3Q
03
02
4Q
1Q
02
02
2Q
3Q
01
4Q
1Q
02
0
2Q04
01
1Q04
Cingular
01
4Q03
Sprint
PCS
3Q
3Q03
EasyMobile Fresh Carphone
AT&T
Wireless
01
Nextel
2Q
Verizon
Wireless
1Q
300
100
-100
-300
-500
Average Price per Minute
0.25
Minutes of Use
'
!"
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#$"%
&
!"
Easy Mobile/Carphone
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#
$"%
&
6
Operator Drivers
Leveraging Opportunity to Retain Sub Ownership
• Retain ownership of the home
subscriber
– Better quality, more integrated
services than competition.
• Differentiate services through
compelling Mass Market offers
– Easy to use, custom service
bundles aligned to target market
segments
– Consistent branding and common
user experience
• Take share of telecom wallet
through transparent, access
agnostic services
– Wireless, broadband (WiFI
DSL & cable),
– Includes seamless handover
• Accelerate new service
introduction
– Home control and application
centralization simplify service
deployment and consistency
– Leverage common applications
infrastructure to reduce costs
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7
Market Drivers : End User Perspective
Service Bundling
•
Integrated (wireless/Fixed), single provider voice and data
service
–
•
Enhanced by a more visual user interface
–
One device – all
my services,
regardless of
location.
•
real time menu choices on handling calls and specifying
importance
Integration of multi-media messaging and calling
–
•
gives equivalent capabilities to existing office communications
systems, whether in the office or traveling on the road.
allows users to choose voice, text, image, files, or video to most
efficiently express their concepts and collaborate remotely.
View accessibility and status of other work group
members
–
graphical presence icons that can initiate communications.
Key End User Features :
Seamless handover between access domains
Common service look and feel across domain
Common “Buddy Lists” across services
One-Stop Billing and Customer Care support
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8
What’s Driving the Change…..
Regulatory
Changes
Maturity of Key
Technologies
Local Number
Portability
3G Spread
Spectrum
IP Voice
Telephony
IP Data
Services
+
+
xDSL
DOCSIS
WiFi
VoIP (QoS)
Spectrum
IP Multimedia
Subsystem
Standards
Softswitch &
Packet Core
Converged Devices
MIMO/BLAST
Source: SBC’s 2003 Analyst
Conference 11/14/03
Trend Services Bundling – “Grand Slam”
Reduced Barriers to Entry
Voice, Data, Video/Entertainment, Mobility
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Consumer Voice Convergence
DSL / Cable
• DSL/Cable broadband used
for backhaul to network
convergence gateway
• Move POTS phones to VoIP
adaptor
DSL / Cable modem
• Add WiFi access point/router
WiFi Mobiles & Dualfor indoor mobiles and
mode Wireless
Internet access
• Dual-mode Mobile phones
can use either outdoor
network or indoor WiFi
VoIP IAD
Mobiles
WiFi Access
Point, Router
POTS phones
Residence
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10
Convergence In Action: Mobile Professional
!"
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% &
*
! "# $
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! "# $
(
% (&
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.
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0
1
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11
Converged Network Scope
Converging
Voice Services
-Lower access costs
- Extend subscriber footprint
Wireline
Voice
(Ckt & VoIP)
• One Number Services
• Wireless Centrex
Wireless
Voice
(Ckt & VoIP)
Full IMS Compliance
-Increase revenues through
new service offerings
• IP Centrex
• Web Portal Service Control
Converged Packet
Network
• Presence and Location Services
• Push to Talk
• Wireless Multimedia Services
Converging
Data Services
-Lower network costs
with common platforms
Wireline
Data
• IP Mobility
Wireless
Data
• Network convergence enables new hybrid services
• Services should be consistent across multiple networks
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12
Evolving to Lifestyle
Services
Feature Driven
Implication
Definition
LOW
Value Driven
Lifestyle Driven
Differentiation, Stickiness & Revenues
• Capacity and throughput
limited by available network
bandwidth
• Not typically context sensitive
• Low interaction with end
users
• Only offer static information
• “Table stakes” services
• Driven by technology, not end
user needs
• Simple combinations of
feature driven services
• Enhances and enables
more complex
communication
• More context sensitive
• Higher levels of interactivity
• Low operator differentiation
• High end user churn
• Low end user willingness to
pay
• Difficulty sustaining
operator revenues
• Easily replicated by all
operators
HIGH
• Are highly interactive, context
sensitive & location aware
• Don’t ignore continued
importance of voice
• Offer subscriber personalization
to provide stickiness
• Deliver value by meeting end
user lifestyle needs
• Integrated voice and data
services – help end users
‘Cross the Chasm’,
leading to behavioural
change vs. pure data
services
• Increasing voice & data traffic on
the network
• Significant & sustained
operator revenues
• Reduced end user churn
• Differentiation between operators
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13
Roadmap of Potential Services
How do we get there
Feature Driven
•
•
•
•
•
•
•
•
•
•
•
•
•
Instant Messaging
Push to Talk
Voice Messaging
Picture Messaging
Video Clip Alerts
Video Clips on Demand
Ringtones
Screensavers
Weather/Traffic information
Business finder
Mapping services
Currency Converter
Downloading Management
apps on handsets
• Voice Control
• Emergency Call
• Person/Asset Tracker
Communication
Convenience
Entertainment
Safety & Security
Value Driven
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Active Phonebook
Instant Conferencing
Instant Video
Wireline Displacement Bundles
Quiz’s
Voting
Gaming – Single/Multi Player
Gaming – Location based
Gambling
Live Wire
Music Portal
Finding Places
Personal Organiser
Location enabled M-advertising
and M-Coupons
M-Payments
Panic Alarm
Personal Security Guard
Navigation Service
Lifestyle Driven
• Family Communications Portal
• Community Bulletin Boards
• Live Wire Plus ! (Personal
Preference setting)
• Dating Services
• Time Out
• Portable Travel Agent
• Activity Agent
• Guardian Angel
• Health Monitor
• Home Security
• Emergency Service Solutions
Focus
Services
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14
Where’s the new revenue coming from?
The Consumer
40% increase in
$4B
revenue-per-year
Activity LIFESTYLE
Agent DRIVEN
Portable
IP TV Travel
Agent
Unified Live Wire
Communications
$3B
$2B
FEATURE
DRIVEN
Location-Based
Service
$1B
Push-toTalk
Instant
Messaging
Lifestyle Services
- Rich media
entertainment
- Interactive
- Context sensitive
- Highly personalized
INCREMENTAL
MONTHLY
ARPU
Media/
Content
0
2005
2006
2007
2008
$1.23
$1.70
2005
Source: Lucent Primary Market Research and Modeling, 2004
$5.47
$3.34
2008
Lifestyle services help the operator maintain relationships with
subscribers, regardless of how they access services
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15
Emerging Advertising Models Offer Opportunity
Advertising Landscape
IM Spam
Pop-ups
“Push”
Smart
Malls
SMS-based
advertising
Email spam
Direct Mail
Cable TV
Advertising
National
Local broadcast
broadcast
Advertising
advertising
Delivery
Method Opt-In/Out
Banner Ads
Billboards
Local
Newspapers
Trade Magazines
“Pull”
Opt-in
profile-driven
LBS Ads
Google E-mail LBS drive-by ads
AdWords
*MTV
Amazon
Recommendations
Electronic
Supermarket
Coupons
Contextual Ads
(Amazon)
Contextual Ads
(Google
AdSense)
Local Magazines Google AdWords
• Area of high privacy
concern
• Acceptance
contingent on
consumer opt-in and
high degree of
personalization in
push advertisements
Locationbased
search
Traditional Search
Engine Ads
Yellow Pages
•
•
“Dumb”
Not highly targeted
Mostly passive pull
advertising (billboards,
non-targeted banner
ads)
Targeted
•
“Smart”
Highly targeted based
on factors across time
—
—
—
Ad Characteristics
•
Past behavior
Current needs
Current state (e.g.,
Location)
Emerging technologies
Advertising models are changing in both delivery method
and modality, creating an opportunity to leverage networks in new ways
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16
To Deliver Lifestyle Services, the Approach to Service
Delivery Needs to Change
IM
How would you send a picture to
your PTT Group ?
Individual
Services
Using Point
Solutions
IMS Platform
IM
PTT
Application
Software
Location
Application
Software
PTT
Server
IM
Server
IM Server
(Presence,AAA)
Sub. Database
Blended
Lifestyle
Services
Leveraging
IMS Platforms
Services
Supported by
a Common
IMS Platform
PTT
Application
Software
PTT
Server
Media/Content
Application
Software
MPC/ISG
eMRS
ISG
PDE
Sub. Database
Sub. Database
Live Wire
eMRS
Sub. Database
Activity Agent Communities
Application
Software
PTT
Server
Application
Software
Application
Software
MPC/ISG
ISG
ISG Presence & Availability Server
LSS
LSS+MGW
eMRS Media Resource Server
Unified
Comm.
Application
Software
PTA
Application
Software
IM
Server
Location
Application
Software
Application
Software
SDSD-HLR Home Subscriber Server
Application
Software
Unified Comm.
Server
MPC/ISG
ISG Presence & Availability Server
LSS
IMS Platform
LSS+MGW
eMRS Media Resource Server
1.
Point Solutions are
expensive and don’t readily
support new ‘lifestyle’
targeted blended services
2.
Core Networks need to
embrace the IMS Service
Delivery Framework
SDSD-HLR Home Subscriber Server
Services
Supported by
Point
Solutions
IM
Application
Software
IM Server
(Presence,AAA)
Sub. Database
PTT
Location
Application
Software
Application
Software
PTT
Server
eMRS
Sub. Database
MPC/ISG
PDE
Unified Com
Application
Software
Unified Comm.
Server
LSS
MGC/MRC/MGW/eMRS
MGC/MRC/MGW/eMRS
Sub. Database
Sub. Database
IMS: IP Multimedia Subsystem
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Active Phone Book
• A key building block for Blended
Services
• Simple interface to unify all
communications across fixed and mobile
end points for
– Contact management
– Media management (Voice, Video, Email,
IM, Collaboration etc.)
• Common directories and addressing
across applications
• Presence, Availability, Location and Policy
Sharing across applications
• Improved interface and context sensitivity
driving usage and ARPU increase
– Communication services
– Enhanced content
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18
The Convergence Trend – The Move From
Technology Centric to a User Centric Model
“Virtual
“Virtual Bundling”
Bundling” to
to
address
-users’ desire
end
address endend-users’
desire
for
for aa unified
unified communication
communication
experience
experience that
that delivers
delivers
voice,
voice, video
video and
and
data
data services
services
Brand
Brandextension
extensioninto
intonew
new
segments
segmentsand
andnew
new
service
serviceareas
areas
Moves
Movesthe
theshare
shareofof
telecom
telecomwallet
wallet
Dependent
Dependenton
onAccess,
Access,
network
networkand
anddevice
device
Network
Network “IP”
“IP” ––
Initial
Initial Convergence
Convergence of
of Network
Network
Elements
Elements at
at physical
physical layers
layers
Delivers
DeliversOpEx
OpExand
andCapEx
CapEx
control
control
Delivers
carrier
grade
Delivers carrier grade
security,
security,reliability
reliabilityand
and
performance
performance
Requires
unified
Requires unified
operations
operationsenvironment
environment
Delivers
Deliversinteroperability
interoperability
through
throughopen
openstandards
standards
Leverages
Leverageslegacy
legacynetwork
network
strength
strength
“Value
“Value over
over IP”
IP” ™
™ -Complete
Complete Network
Network
Convergence
Convergence at
at Every
Every Layer
Layer
to
to EFFICIENTLY
EFFICIENTLY deliver
deliver aa
full
full seamless
seamless LIFESTYLE
LIFESTYLE
experience
experience
Delivers
Deliversend-to-end
end-to-end
control
controlover
overcustomer
customer
experience
experience
New
Newrevenue
revenueand
and
improves
improvescustomer
customer
stickiness
stickiness
Access
Accessand
andDevice
Device
independence
independence
High
Highspeed
speedservice
service
deployment
deployment
Maintains
intelligence
Maintains intelligence
in
inthe
thenetwork
network
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19
Summary
• Different stages and steps for convergence.
• Convergence allows a better experience for the end
user and new opportunities.
• Increased revenue for Operator and reduced Churn.
Architecture advantages.
• IMS is the basis of fixed/mobile convergence
IMS puts the Value in IP
TM
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Thank you
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