Infrastructure of a Ubiquitous Society
Creating Value over IP™
Jeff Cortley
Director – Product Management
Application Solutions Business Unit
May 9th, 2006
Lucent Technologies – Proprietary
Use pursuant to company instruction
true
Global Market Trends:
C
Ex ont
pe inu
rie ou
nc s
e
Toward Ubiquitous Lifestyle Communication Experience
Bl
Tomorrow
Se en
Applications
rv de
ic d
Enterprise
Wireless Broadband
es
Today
M-commerce
SMB
Users
Vertical
Markets
e-Learning
e-Health
Content
Multimedia
Broadcasting
Simple Apps
Gaming
Consumer
Consumer
Teen/Youth
Machines
Smart
Phone
Business
Connectivity
One-Size
Fits All
Voice
Video
Audio
Photos
Yesterday
PDA
C
IP
Phone
PC
Network
TV
Data-capable
computers
Phone
System on
Camera
Chip (SOC)
Phone
nt
lie
STB
HDTV
Robots
Next
Generation PC
Vertical-specific:
Telematics;
RFID
Locationbased
IP Core
Limited
Public WiFi Fiber to the
Broadcast
Circuit
Premises
“Wireless
Fabric”
Cable
WLAN
DSL
2.5 G
WWAN
Home Network
3G WWAN
Sensor
Networks
(RFID)
Devices
Networks
**Schematic represented here is a modified version of a slide created by the Yankee Group
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n
o
m
m
e
Co Cor
Market Trends: Providers Compete to
Deliver Seamless End-User Experience
‘Triple Play’ Services:
Sky acquires EasyNet for £211m
Peer-to-Peer Networking: Purchased by eBay for $2.6B
“IPdrum Mobile Skype Cable now launched globally”
53M subscribers today, adding 150K more per day.
Personalization: Market Cap $120B
“Google Button on Motorola Phone”
Google generated $3.8B in ad revenue last year.
Ad revenue per visitor: $43.18
Online Marketplace: Market Cap $52B
eBay today has 157M active members
Consumer Content:
Monthly Unique Visitors: 119M
Ad revenue $1.14B last year
Ad revenue per visitor: $9.58
Making the Traditional Network a “Dumb Pipe”
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Future Competitive Landscape
ƒ Three main business models for providers
ƒ Connections, Content, Advertising
ƒ Emerging Service Providers
ƒ Expand from core competency (search, IM,
content, etc.) to capture additional subscribers
ƒ Rapidly role out many new services and monetize
larger subscriber base
ƒ Segment subscribers, based on preferences, to
enhance monetization
ƒ Continued use of “free” access
ƒ Leveraging success in wireline services to move
into wireless
ƒ Traditional Providers
ƒ Attractive (to content providers and advertisers)
and growing subscriber base
ƒ Mobility and Location capabilities further
personalize and target user base
Expand on Core Competency
Rapid Service Delivery
Further Segment User
Preferences to Monetize
Parasite on Networks
Build Strength in Mobility
Content & Advertising
Personalization
Enterprise Strength
ƒ Ownership of enterprise market
ƒ Increasing speed of deployment for new services
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Speed to Deploy
Redefining the End User Experience
Enhanced Communication Experience*
ƒ Rich Media Sessions and Mixed Media Messaging
ƒ Improve end-user experience by combining
multiple sessions, multimedia, and multiple
devices in one application
ƒ The ability to “know” when someone is actively
available for communications will influence how and
when to contact them
Ease of Use and Seamless Access*
ƒ Information sharing must be simple and secure
ƒ Instantaneous, always available service access
regardless of network or service provider
ƒ Real time synchronization of contact updates / always
available address book
ƒ Single portal to launch services (click to launch)
ƒ Discovering and using new services must be simple
and intuitive
Lucent Primary Market Research: Mass Market, Converged Services, Active PhoneBook
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The Real Opportunity: Blended Services,
Not Just Bundled Services
Bundling
Bundling alone
alone will
will not
not create
create
lasting
lasting incremental
incremental value.
value.
200
(U.S. Dollars)
Monthly ARPU
250
Bundling drives
commoditization
and price erosion
HDTV
VoD
Premium Video
Digital Video
DVR
Basic Video
Broadband Data
Long Distance
Voice
Local Voice
Wireless Voice
customer’s
customer’s spending
spending as
as value
value is
is
eroded
eroded
ƒƒ Seamless
Seamless blending
blending of
of voice
voice
(wireline
(wireline and
and wireless),
wireless), data
data and
and
video
services
required
to
realize
video services required to realize
full
full revenue
revenue potential
potential
Feature
ƒƒ Providers
++ Driven
Providers with
with scale
scale and
and wireline
wireline
150
wireless
wireless networks
networks will
will have
have an
an
advantage
advantage
100
ƒƒ Providers
Providers with
with aa strong
strong convergence
convergence
50
0
ƒƒ Bundling
Bundling alone
alone will
will only
only shrink
shrink the
the
story/vision
story/vision will
will flourish
flourish and
and dominate
dominate
Voice
Only
Voice
& Data
Voice, Video
& Data
• Everyone is bundling to retain subscribers.
• Bundling simplifies billing - does not reduce
other OpEx.
Blended
Blended services
services == Increased
Increased
revenues,
revenues, customer
customer loyalty
loyalty
Source: Adapted from “Telcos Take on Cable with Video
Delivery,” The Yankee Group, February 2004, page 8.
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Emergence of New Sources of Market Value:
Delivering Secure, Personalized Content
Targeted,
contextsensitive
content
Preferences
Presence
Location
2006 World Series
120
Relevant,
contextsensitive
content drives
market value
Market Cap $B
100
80
60
40
20
0
Google
Verizon
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AT&T
Time
Comcast
Warner
Disney
Yahoo
Feb 17th Market Data
Value over IP™: Unlocking Opportunities
Capture 24 Hours of the End User’s Day
Evening at home – Next
Gen TV, Music on
Line, VoIP;
Follow-me TV
While you sleep –
12 a.m.
Security Monitoring
Morning Rush –
24 hours
7days a week
9 a.m. –
Out of the Office –
Telematics;
Follow-me TV
VoWiFi
In the Office –
Next Gen TV
12 p.m.
In the Office –
Fixed Broadband /
Wireless Broadband
VoIP
Lunch Hour –
Interactive Gaming
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Blending of Telecom, Internet and Media
Boundaries between
Telecom, Media and
Internet worlds are
increasingly blurred
Voicemail, Email,
MMS*, IM, SMS,
VoIP, etc.
Web/WAP*, Email,
Calendar, PIM*,
On-line Transactions,
Content Services,
Gaming, etc.
Web
Services
Telecom
Services
Video on Demand,
Pay Per View,
Wireless BCMC*,
IPTV, Blogs, etc.
Broadcasting
Services
IMS Core Network
IP Networks
IMS = Blending Services Across Multiple Delivery
Platforms & Networks
* MMS = Multimedia Services
WAP = Wireless Access Protocol
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* PIM = Personal Information Management
BCMC = Broadcast Multicast
New Paradigm:
IP Multi-Media Subsystem (IMS)
What is the IP Multi-media Subsystem (IMS)?
IP-based multimedia and telephony core network that enables two-way voice,
data, and video across multiple access technologies and devices, at the high
quality and reliability expected by an end-user today
Challenge
Revenue & Churn
Opportunities Afforded by IMS
ƒ Increased ARPU (up to $40-70 per user,
per month in "Power Adult Segment")
ƒ Service loyalty through business,
family, friends, "community type"
services
Time to Market
ƒ 20% improvement after year one, largest
gain in service creation and implementation
OpEx Savings
ƒ OpEx improves by 20%-25% after year
one, largest gain in customer management
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Lucent’s Enhanced IMS Architecture
Applications
End-User
Experience
Management
A1
A2
Active
Phone
Book
Push
to
“Talk”
Data
management
WiFi/3G
WiFi/3G
Presence
Roaming
User profile
management
A12
Lucent Session
Manager
IMS
Service Broker
CSCF
Access
Networks
MRFC
BGCF
Broadband
Residential
Access
……………………………………
A3
A23
Unified Subscriber
Data Server
HSS/
SDHLR
Enterprise
Access
A1
Am
MM
Mobile
Messaging Extension
…………
Rules engine
An
Common
operations
protocol
A2
Amn
Lucent Network
Controller
Lucent Network
Gateway
Media Gateway
Control Function
Media
Gateway
3G Mobile
Network
Etc.
Key Bell Labs
Innovations
Driving
Convergence
SS7
MiLife™ Application
Servers
Programmability
OSA/
Parley
PSTN
Wireless into the
Lucent’s truly differentiated IMS that drives intelligence
MSC
network to enable the delivery
of
lifestyle
services
to
the end user
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Realizing Blended Services and IMS
Tom User 657 555-1234
Mail and Messages
Missed Calls
Search
Contacts
1
Calls
Logs
PAB
Prefs
2 Create a Common UI
• Intuitive access to new services
• Build Communities
• Cross Domain Brand
3
PS
Presence Enablement
• User Context
• Intelligent push/alerts
• Track Buddies
4 Instant Communications
• Messaging
• PTT/POC
• Leveraging PAM
Unified Subscriber Data
•
•
•
•
Consolidate Multiple Ids
Enable Domain Roaming
Facilitate Complex transactions
Federate to untrusted external
domains
Blended Services
• User-directed re-grouping of
communities
• Transform from Commodity to
LifeStyle
• Always-On
10 Active Content
• Context Aware
• Communities
• Cross Marketing
• Enterprise tie-ins
11
7
IMS Enablement
•
•
•
•
SIP Enablement
Session Mgmt
Extensible client
Service Broker
9
Real Time Rating/Charging
• Bill for events vs subscription
• Integrated Account Mgmt
• Bundles/Promos across Domains
5 LBS
• Directories
• Gaming/Content
• Personalization
6 Multi-Media Communications
• P2P video
• Video Mail / IM
• Visual RingTones
• Collaboration
8 Multi-Modal Comm.
• Fixed/Mobile
• Mobile/Wi-Fi
• Mobile PBX
• Triple Play Services
Leveraging network assets enables the delivery of unique, personalized,
blended services to the end user, through a common user interface
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Operator’s Challenge
Managing Partners
Fleet Management
Call Center
Dispatch, etc
Picture Mail, Information
Services, Content
Delivery, etc
Consumer
Services
Supporting
Enterprises
Enhancing the
productivity of the
Enterprise with AlwaysOn-Services, Presence
and Location-based,
Push-To-X and webbased services
Wireline / Wireless
Access Management
Enterprise
Services
Consumer Services
Keeping pace with the demand for
new services including:
Video, Streaming, Web-based
services, Push-To-X, Personalization,
Preferences and Availability
Virgin, Comcast, ESPN,
Disney Mobile,
Maintaining Fox,Time
legacy Warner,
solutions including
Boost, etc
Text Messaging, WAP and Voice
Services
Platinum
Supporting Partners
Partner(s)
Possibly unique Business
Non-Premium
Level Agreements
Partner(s)
• May launch unique
Competing
requests for service to
Networks
Competing Networks
- Roaming Agreements
-Launching/Activating
services with unknown
Data Services
traffic volumes
Voice Services
Video Services
- Competing services may
IP Services
traverse
network (Skype)
create high-volumes of
service requests,
application types,
peak/valley traffic
volumes
• Unique Applications
• Unique Volumes of
Traffic and Types
Flexibility to support multi-tiered business partner agreements based on application
service availability, traffic and bandwidth to capture deserved revenue
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Unified Policy Management
Service Level Control of Network Resources
Vortex Technology
IMS
OSA-GW
SIP Application
Servers*
SIP
CCF
Sh
SCIM
SOAP / XML
SIP
HSS
Web
Service
PDF
CSCF
SIP
IP Access SIP
and
Transport Networks
• Flexible, fine-grained management of network resources
-Controlling quality of end-user experience
-Efficient Use of network resources
-Protection of network resources
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Federated Data & Identity
“Circle-of
-Trust”
Single Sign-on (SSO)
SP
SP
SP
App
App
– User does single log-on
User
App
– Has access to many apps
App
Æ
User
Shared
Authenticator
Secure, Controlled Data Sharing
– Requester-targeted
– Privacy-conscious
Shared Authenticator
on web, e.g., with
Tom’s data
– “Enter Once, Share Everywhere”
Value propositions
–End-User
Tom
•Ease-of-use, convenience
Internet /
Web
–Network Operator
•More opportunity to “own” the subscriber
In a web
session
•Leverage trust, authentication and profile
data
–Application Developer
•Don’t need their own Id Mgmt soln
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Shipping
address,
Credit card,
Prefs, …
The richness of YOUR world is felt through
Interactive Multimedia
VoD/TVoD
Video Telephony
• Scan global video
library of 100k titles
• Point and click to select
• One click authentication
and payment
• Start streaming title
• Content tailored for YOU
e.g. BW, commercials
• Pause, FF, REW, REC
on demand
• Receive call during
program
• Click to see caller
• Pause program to answer
• Choose video on/off
• Browse personal files
pictures/web together
• Resume program
Remote Monitoring
Click To Buy
• Scan global video
sources of 100k streams
• Point and click to select
• Content tailored for YOU
e.g. BW, zoom, pan
• Two-way audio/video
on demand for remote
dialog/answering
• See item during program
• Point and click item
• Pause program and
hyperlink to vendor
• One click authentication
and purchase
• Resume program
Fully interactive multimedia services, tailored to your needs,
on any device in your home, on demand
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Push to… Socializing & Mobile Communities
REAL TIME VIDEO BROADCAST
MOBILE BLOGGING
MOBILE PODCASTING
END USER CREATED CONENT: share experiences with friends anywhere with the push of a button
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Measuring Success
Emerging Competition Traditional Competition
Service Provider Goals
New Business Metric
Launching IP-based
Services
Number of net new users
Speed to Market with new
services
Speed from concept, study to
introduction
“24/7 IP Prosumer”
“3 Month or Less Intro Cycle”
Alternate Revenue – Value- Target revenue for valueadded “quad play” end-user added end-user services
services
Reduce Cost of Developing
& launching new services
Reduce costs of successful
and failed services
Laser Focus on core
competency (“engine”)
All new services have one
theme built around core
competency.
“Get Fair Share or More”
“Allow More Innovation:
Cost of Failure is Minimal”
“Search”
Link Control & Quality of the Willingness to pay premium
Network to a better end user for QoS and control
experience
Leveraging IP Base to move
into new services
Number of converged services
sold to “24/7 IP Prosumer”
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“Content” “Connections”
“Deliver Quality of
Experience”
“Take Share “
Converged
24/7 Services