2006-06-18
Convergence
Presented by
Wally Hariz
Agenda
Long term growth opportunities
Focus on the end user
The operator opportunities
Our convergence vision
– User service convergence
– Device convergence
– Network convergence
The way forward
Summary
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Industry transformation /
Convergence
(from 1997)
mobility
Wireless/Cellular
Wireline
PSTN
PTN
ISDN
3G/Wireless Internet
MMM
Personal
(Mobile)
Multi-media
services
WAP
Intranet/Internet
Carrier class
PC-WAN
WWW
PC-LAN
PC/Servers
desk top computing
main frames
electronic
publishing and
entertainment
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Convergence
It is happening today
W
2G
N/
LA
Laye
r
/3G
ed ar
Single mailbox
chite
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Mult
ia
mob ccess
ile ph
one
( UM
/
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Bun play
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Tripl
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o ne
le ph
Sing mber
nu
The telecoms industry has entered a new era of increased
competitiveness, new business models and important technology
shifts
Convergence is one important driver of this ongoing change.
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Convergence definition
Traditionally, the term fixed-mobile convergence (FMC) has been used by the telecom industry when
discussing the integration of wireline and wireless technologies. But it is not just about this particular
kind of convergence, it is also about convergence between media, datacom and telecommunication
industries. Convergence is considered from three viewpoints:
User service convergence;
where there are common user service delivery capabilities with access and device awareness. This
means that a multitude of services (person to person, person to content and content to person) can be
provided to the same user over different access networks and to different devices.
Device convergence;
common devices supporting several access types, such as CDMA2000, WCDMA, GSM, fixed
broadband and WLAN. Device convergence allows multiple applications to be run, reusing the same
functions for identification and authentication. Furthermore, the mobile device supports more and more
functions in addition to telephony, e.g. Camera, TV/Video and email.
Network convergence;
this implies consolidation of the network to provide different user services, with telecom-grade quality of
service, over several access types with an emphasis on operator cost efficiency and support to user
service convergence.
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Bit rates and coverage for
Wireless Technologies
End-user
bit rate
Super 3G
1 Gbit/s
100 Mbit/s
10 Mbit/s
1 Mbit/s
UWB
Super 3G
W-LAN
Bluetooth
Evolution
802.11g
802.11b
Bluetooth
WiMax
3G Evolved
802.16
DVB-T
802.20?
3G
100 kbit/s
DVB-H
DECT
10 kbit/s
2G
RFID
Coverage
PAN
(- 20 m)
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LAN
(- 100 m)
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MAN
(- 3 km)
WAN
(- 120 km)
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Telecom has many new
long-term growth opportunities
Positioning
Advertisement
IP-TV/Mobile TV
Mobile enterprise
f
ting
Exis
Cameras
1000
3G
• Regulation
• New Business Models
• Convergence
News & Music & Sport
Gaming
In
no
va
m/e-commerce
Public Services
tio
n
”An all communicating World”
BUSD
Operator service revenues
Market trends
a
orec
Broadband
Migration
TDM/IP
st
3G
Messaging
• GDP/productivity
• Users
• Usage
Broadband
Time
2000
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Focus on the end user
Focus on the end user
On the move
At home
In the office or working site
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EVOLUTION TOWARDS
CONVERGED SERVICES
A qualitative study with 18 households in Sweden, U.K. and USA
March 2005
Services in the study
The mobile device as
“Connected home” remote control
- Media storage
- Security
- Video recorder
end user study
Home communication
–Video calls
– Mobile @home
- Energy
Coordination and synchronization
of family activities
– Family and presence
– Calendar
Results from the ”Evolution towards Converged Services” study made by Ericsson Consumer Lab
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end user study
Some findings from the study
Most users positive to convergent services
High interest for Entertainment related services
Other highlights
– Connected home – media storage and sharing
– Video calls between all type of devices
Results from the ”Evolution towards Converged Services” study made by Ericsson Consumer Lab
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end user study
New business
models need
Focus on usability
and time-saving
Price and richness
Convenience
Home
automation
Logistics & Planning
Social communication
Entertainment & Sharing
Time
Results from the ”Evolution towards Converged Services” study made by Ericsson Consumer Lab
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Convenience and ease of use
Focus on the end user
Make life more efficient
Simplicity in functionality e.g. similar user
interfaces for most services (and across
accesses)
Communication and content services
available across several networks (e.g video
call from 3G phone to PC)
Services adapted to the device and access
characteristics
Simplified processes for identification and
payments (e.g single sign on)
Easy to have cost control
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enterprise
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Focus on the end user
Always Best Connected
Able to connect
–
–
–
–
anywhere
anytime
by device of choice
when on the move.
WLAN, LAN
Best varies according to
–
–
–
user preferences
used service
quality, speed and price.
Seamless transition between
access methods for
Voice/Video/Packet data (session
continuity)
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DSL, Cable TV
PAN
Bluetooth
GSM/WCDMA/
CDMA2000
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Reliability and security
Focus on the end user
Reliability in all transactions independent of access
Connection quality
– voice
– video
– data
Authentication and security must be reliable
regardless of access
No viruses, no worms, no fraud
Nobody listening in
Ability to see who’s calling
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Life is getting a bit challenging…
Focus on the end user
Using all kinds of devices...
All the people we want to reach...
Authorities
Business
contacts
Friends provide reachability!
Key
Keyoperator
operatorrole:
role: provide reachability!
--Be
Bereachable
reachable
--Be
Beable
ableto
toreach
reach
--Regardless
Regardlessof
ofdevice,
device,bearer,
bearer,location,
location,...
...
--Safe,
Safe,reliable,
reliable,trustworthy,
trustworthy,adaptible!
adaptible!
Co-workers
And all the services we want to reach...
Family
Any time, any place!
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<header>
The operator
opportunities
OPERATOR PERSPECTIVE
the operator opportunities
Operator Business Environment
Convergence
Mobile
Operator
Virtual Operator
WLAN incl Voice
Fixed
Operator
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Combined operators
(Fixed & Mobile)
Virtual Operator
WLAN and other
radio incl. Voice
Fixed Substitution
”One-phone”
Pay-TV
Triple-play
Competing
Operators
(e.g., Cable)
Virtual Operator
Broadband incl. Voice
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Convergence drivers and actions
Increased competitiveness,
new business models/partners
and important technology shifts
the operator opportunities
Mobile and Fixed Operator/Service Provider
–
–
To utilize the bundling possibility, increase ARPU with new converged services
Cost rationalization
Mobile Operator/Service Provider
–
–
–
Pursuing fixed/enterprise customers
Promote Mobility advantages
Evaluate access alternatives (for instance BB access)
Fixed Operator/Service Provider
–
–
Maximize bandwidth advantage – triple play etc.
Expand own business with mobile access
CableTV Operators/Service Provider
–
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Expand business with BB access and VoIP
services
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Operator Roles
the operator opportunities
Walled Garden
Channel Provider
Bit-Pipe
content &
applications
own &3rd party content
& applications
3rd party content
& applications
“proprietary”
service layer (SL)
open
controlled SL
3rd party “SL”
transport backbone
Residential
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End-to-End solutions
New Multi-Media Business Models for P-2-P, C-2-P,
Consumer / Enterprise
Mobile
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User
Services
Devices
Convenience
& Ease of Always Best
Connected
Use
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Network
Reliability
&
Security
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Our vision
User Services Convergence
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Common service framework
user service convergence
Common service execution standard (IMS) for all
applications
Applications available over several accesses (Access
aware service platform)
Flexible and common charging system
Common presence and group management functions
Common user management
– Different Subscription profiles for quality and speed.
Common service management
Common identification and authorization system (SIM
card based solution)
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Our vision
Device Convergence
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The mobile phone embraces and
connects product after product
device convergence
”Always with you”
Credit cards
TV reciever
Video camera
Game console
GPS
Digital camera
MP3 player/Walkman
Memory stick
Color Screens
Portable radio
PDA
Fax
Pager
Fixed phone
Communication, Entertainment,
Transaction & Navigation center
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The triple play
Personal Communications
& Content center:
Voice, SMS, MMS, e-mail, etc
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device convergence
Internet (PC)
TV, Video, Audio
Convenience
through
convergence
Handsets
Telephony
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The connected home
ENTERTAINMENT
APPLICATIONS
• IP TV
• Interactive TV
• Streaming music
• Video on Demand
• On-line Gaming
• Off-site storage
• Electronic messaging
• Presence
• Calendar synchronization
• Collaboration
ACCESS
COMMUNICATIONS
•
•
•
•
•
• Wireless Telephony
• Electronic Messaging
• Instant Messaging
• Intercom
• Voice/Video Conferencing
CPE Hardware
Shared Internet Access
Variable access
Shared resources (Printers)
Any device (PC, laptop,
mobile at any location)
ADMINISTRATION
SECURITY
• Account administration
• Equipment Configuration
• Service Configuration
• User Privileges
• Usage Monitoring
• In-Home Monitoring,
• Intrusion Detection
• Remote Video Surveillance
• Parental Controls
• Access Control (Firewall)
• Anti-Virus, SPAM control
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The Connected Home
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device convergence
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Device aspects
Summary
Multi-access devices with intelligence to select
accesses (Always Best Connected).
Multi- and single purpose devices
Platform architecture in devices based on open
standards
Multi purpose use of SIM-card technology
(authentication/security mechanisms)
Home Networks (Home Gateways, Triple Play etc)
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device convergence
Mobile@Home
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Our vision
Network Convergence
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Transformation
network convergence
new architecture and business models
Single-service networks
Multi-Media network
Service network
Data/IP Networks
Cable TV Networks
Content
Wireline Networks
Wireless Networks
with Telecom grade
Application
IP Multimedia Subsystem – IMS
AllControl
IP
Transport back-bone and
Multi Access
higher bit rates, increased coverage and capacity
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Network evolution steps
network convergence
Fixed+Mobile
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Introducing IMS
network convergence
Co-existence with existing infrastructure
Service Network
Charging
Appl
USM
Fixed
telephony
Control
IMS
Mobile
telephony
Transport backbone
PSTN
MSG
BRAS
ss
ce
ss
ac
ce
BB
ac
N
IP
T
PS
Open
GGSN
MSG
WSN
MGW
2G/3G
WLAN, WiMax
Wireline access
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PLMN
MGW
RNC
BSC
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Network Convergence
network convergence
Implementation
Service Network
IMS
Control
The 3GPP IMS is the common base
both for mobile and fixed access
(even before a common backbone is
implemented)
Layered architecture
Unified O&M
Existing products for mobile and fixed
access further developed to support interoperability
between VoIP and CS voice
Stepwise network migration according to specific operator needs.
Transport
Back-bone
Gateways and Service Nodes
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Network Convergence
network convergence
Implementation
Service Network
IMS
Control
Access
Transport
Back-bone
Optimised GSM/WCDMA/CDMA
radio access network for IMS (IP-telephony
and Video over IP)
High speed fixed broadband access
using IMS functionality
Growth of short/medium range radio technologies
(WLAN, Wimax, Bluetooth) as an extension of fixed
broadband access.
Gateways and Service Nodes
Residential
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Mobile
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Network Convergence
network convergence
Implementation
Service Network
IMS
Control
Transport
Back-bone
Common IP based backbone
MGW’s, Session Border Gateways and
other key nodes combined into the
same physical nodes.
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Gateways and Service Nodes
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Target network architecture
network convergence
Common foundation for fixed, mobile and enterprise
services
Service Network
Shared functions:
-
IMS
Charging
Presence
Directory
Group & List functions
Provisioning
Media handling
Session control
O&M
Shared competence
Shared O&M staff
Shared Infrastructure
IP Multimedia Subsystem
Control
Transport Back-bone
Gateways and Service Nodes
Residential
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The way forward
Ericsson AB 2006
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Why Ericsson?
The way forward
Understanding
Delivery
Consumer & Enterprise Lab
Mobility World
User Services
Ericsson Mobile Platform
R&D
Experience from Installed
Base
Devices
• Richer user
services
• Secure network
migration towards
all IP
Global Telecom Services
Operator /
Service Provider Dialogue
Network
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An all Communicating world
Prime driver
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summary
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Ericsson position on convergence
Ericsson believes in growth of the telecom industry
and the vision of an all communicating world.
Ericsson believes in the significance of convergence
and will actively pursue the business and technology
evolution in these areas.
Ericsson continously develops a product portfolio
that leverages on the installed base.
Based on our understanding of the specific operator
and user needs Ericsson tailors converged
solutions.
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Convergence summary
Operators will explore convergence in order to grow
their business and reduce cost
Main end-user benefits are Ease of use, Always Best
Connected, Reliability and Security
Convergence is implemented in three dimensions:
User Services, Devices and Network.
The evolution starting point, requirements and needs
are unique for each Operator/Service Provider.
Ericsson supports convergence with a stepwise
approach starting from the installed base
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