ITU-T Regional Consultation on Conformance
Assessment/Interoperability
(Sydney, Australia, 16-17 September 2010)
Open Standards and Innovation
-a Pilgrims View to a New Nation
Siva Ramamoorthy
Sydney,16-17 September 2010
Innovation across the Pyramid
India Dry Cleaners at $1
Kerala Fisherman
Sydney, 16-17 September 2010
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Summary – Trickle Up Innovation
"The dominant logic holds that innovation
comes from the U.S., goes to Europe and
Japan, then gravitates to poor countries"
says C.K. Prahalad, a strategy professor at
the University of Michigan's Ross School of
Business and author of The Fortune at the
Bottom of the Pyramid: Eradicating
Poverty Through Profits. "But now we're
starting to see a reversal of that flow."
CK Prahalad (1941- April 2010)
Nadi, Fiji, September 2009
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Agenda- Key Hypothesis
Standards Help Innovation
Innovation creates enormous
Opportunities for Nations- especially
emerging Nations
Case Study
Call to Action
Sydney,16-17 September 2010
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The Telecom Decade
No of Subs
CAPEX
ARPU
% of OPEN BUILDING
BLOCKS in ICT
Death of
Telecom
1995
2000
Sydney, 16-17 September 2010
2001
2005
2010
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The Telecom Industry Over the Years
Earlier:
Completely End to
End Proprietary
Physical design of
equipment
Racks, Chassis,
Boards
OS
Middleware
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The Telecom Industry over the years
Open
Source
and
Linux
Boards
and
Chassis
FPGA
Middle
Ware
(such as
SA Forum
Specs)
Application/ Services Software
Consortiums:
-PICMG
- Linux Foundation & Carrier Grade Linux
- SCOPE Alliance
- Service Availability (SA) Forum
Interop Forums:
ITU, MEF
ITU Work on Conformity and Interop WTSA Res 76, ITU Pilot Conformity Database, Test Labs
Global System for Conformity Assessment (ISO/CASCO)
The Post 2000 Telecom Product resembles a Eco System
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Innovation is multipronged
Business Models:
Risk/Reward Share, Revenue Share,
Advertising based
Technology:
Open Hardware/ Software based building
blocks
Customer Usage:
Costumer Intimacy to Incredible
New Heights
E Governance:
Closer Government to Citizen
initiatives
Sydney, 16-17 September 2010
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The Innovation Curve
Step 5: Customer Focused Apps –
VAS, Mass Impact in the Lives of
People
Step 4: PC/Telecom Cross
Pollination: -Server Based, Skype,
Wideband Codecs
Step 3: Architectural RealignmentDistributed Architectures, Additional
Components (Security)
Step 2: BoM Simplification of
Existing Products – Soc, FPGA
Step 1: Create Existing Products
with Open Building Blocks
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Innovation Barriers to Entry
• Silicon FAB - $4 Billion
• Designing a FPGA - $100K
• ATCA reuse - $100K
• Linux/Customization – Free/$10K
• Open Source Code – Free
• Use Open Source Components – ex.
codecs
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Global Telecom Industry Observations
Emerging Economies leap frog
technology
Operators are outsourcing their
networks increasingly
Move towards Converged Networks
Greater Focus on Government to
Citizen services
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Large opportunity for Innovation Using
Standards
Product/IP Talent
Big Local Market
Standards
IP
Supportive
Supply Chain
Sydney, 16-17 September 2010
Early Role models
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Innovation Using Standards
Large Opportunity to Innovate
Re usable HW Building Blocks
Open Source
Democratization of Knowledge
Standards
Eco System of Innovation
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Why is it Important for emerging
economies
Leapfrog technology
Lost Capex
Low Opex
Best of breed technology
Enabling local employment
Technology Index Moves up
Larger Range of Providers Interop’ing
with each other
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India Innovation
Business Innovation
Managed Services – Ex. Bharti
Point to Point Mobile Services cheaper than
a Postage Stamp
Convert Fixed costs into Variable costs
$0.01 per minute
Revenue growth of 120 percent Y-o-Y, Net
profits 282 % (Reverse Innovation)
Sydney, 16-17 September 2010
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Case in Point
Applying Standards and
Innovation to NGN Traffic
“Carrier Ethernet”
Sydney, 16-17 September 2010
Case in Point
Applying Standards and
Innovation to Customer
Intimacy
“Value Added Services”
Sydney, 16-17 September 2010
Summary- Standards and Innovation
Large Opportunity for emerging
Economies
Provides for a way to leap frog technology
A large eco system of Providers of
solutions and products with Standards
Reuse of Known Hardware and Software
Technology Building blocks
Call to Action
Sydney, 16-17 September 2010
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Thank You
SIVA RAMAMOORTHY
Sydney, 16-17 September 2010
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