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  1. 1. AlbatrOSS IST-2001-34780 Architecture for Location Based Applications of Third geneRation Operation Support Systems Document Number: IST-2001-34780/2/WP2/1 Title of Document: Document Type: (P/R/L/I)* P Nature of the Document: (P/R/S/T/O)** R Date: 31 July 2002 Version: V1.3 Working Group: AlbatrOSS Business Scenario Group Workpackage responsible for the document: WP2 Editor: Quoc-Tuan NGUYEN; Jim CLARKE Contributor(s): AlbatrOSS Consortium ABSTRACT Provides a context for the various scenarios from project participants, and describes a reference framework as a basis for carrying out the project KEYWORDS Scenarios, Business Model, Requirements © 2002-2004 by the ALBATROSS Consortium. See http://www.tssg.org/albatross/index.htm for further details * Type: P:Public, R-Restricted, L-Limited, I-Internal ** Nature: P-Prototype, R-Report, S-Specification, T-Tool, O-Other
  2. 2. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 2 of 98 IST-2001-34780 AlbatrOSS IST-2001-34780/2/WP2/1 Requirements, Business Model and Scenarios Definition © Copyright by the AlbatrOSS Consortium. The AlbatrOSS Consortium consists of: Waterford Institute of Technology (WIT - Ireland) – Project Coordinator Fraunhofer Institute for Open Communication Systems T-Systems Nova GmbH Berkom (TNS - Germany) (FOKUS - Germany) Atos Origin Integration (ATOS - France) UH Communications A/S (UHC - Denmark) Lake Communications (LAKE - Ireland) Lucent Technologies (LU - Netherlands) Telefonica Investigacion y Desarrollo (TID - Spain) IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  3. 3. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 3 of 98 Table of Contents 1 INTRODUCTION......................................................................................................6 1.1 Deliverable Structure.........................................................................................................7 2 3G MARKET OVERVIEW........................................................................................7 2.1 3G Services .......................................................................................................................10 2.1.1 The Virtual Home Environment ................................................................................12 2.1.2 A 3G Service Case Study ...........................................................................................14 2.2 3G Value Chains ..............................................................................................................19 2.2.1 UMTS Forum Business Models..................................................................................21 2.2.2 Implications for AlbatrOSS........................................................................................22 2.3 Market Analysis...............................................................................................................23 3 VHE SCENARIOS..................................................................................................25 3.1 eTOM ...............................................................................................................................25 3.2 Integrated Service Billing Scenario................................................................................26 3.2.1 Context .......................................................................................................................26 3.2.2 Storyboard - A Collaborative Working Service Usage Scenario................................26 3.2.3 Business Analysis.......................................................................................................27 3.2.4 Requirements..............................................................................................................29 3.2.5 Questionnaire..............................................................................................................30 3.3 Service Selection & Deployment scenario .....................................................................31 3.3.1 Context .......................................................................................................................31 3.3.2 Storyboard...................................................................................................................31 3.3.3 Business Analysis.......................................................................................................31 3.3.4 Requirements..............................................................................................................33 3.4 Business Customer Scenario ..........................................................................................34 3.4.1 Context .......................................................................................................................34 3.4.2 Storyboard...................................................................................................................35 3.4.3 Business Analysis.......................................................................................................36 3.4.4 Requirements..............................................................................................................39 3.5 Inter-technologies and Inter-domain Roaming Scenario ............................................41 3.5.1 Context .......................................................................................................................41 3.5.2 Storyboard .................................................................................................................41 3.5.3 Business Analysis ......................................................................................................42 3.5.4 Requirements ............................................................................................................47 IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  4. 4. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 4 of 98 3.6 Virtual Home Service ......................................................................................................49 3.6.1 Context........................................................................................................................49 3.6.2 Storyboard...................................................................................................................49 3.6.3 Business Analysis ......................................................................................................51 3.6.4 Requirements..............................................................................................................53 3.7 ISP evolution towards 3G market .................................................................................54 3.7.1 Context .......................................................................................................................54 3.7.2 Storyboard...................................................................................................................55 3.7.3 Business Analysis ......................................................................................................57 3.7.4 Requirements .............................................................................................................59 4 REQUIREMENTS...................................................................................................70 4.1 Customer...........................................................................................................................70 4.1.1 Virtual Home Environment.........................................................................................70 4.1.2 Location Transparent..................................................................................................70 4.1.3 SLA & Subscription Management..............................................................................70 4.1.4 Real Time Response....................................................................................................71 4.1.5 Terminal Adaptation...................................................................................................71 4.1.6 Performance Expectation............................................................................................71 4.1.7 Customer Self-Provisioning Expectation....................................................................71 4.1.8 Security.......................................................................................................................72 4.1.9 Personalisation............................................................................................................72 4.1.10 Billing........................................................................................................................72 4.2 Service Provider...............................................................................................................72 4.2.1 User Profiles................................................................................................................73 4.2.2 Service Activation.......................................................................................................73 4.2.3 User Information.........................................................................................................73 4.2.4 Communication protocols...........................................................................................73 4.3 Network operator.............................................................................................................73 4.3.1 Roaming and VHE......................................................................................................74 4.3.2 Number Portability......................................................................................................74 4.3.3 Accountability.............................................................................................................74 4.4 Mobile Network Operator (MNO).................................................................................74 4.4.1 Set-up Order Management..........................................................................................74 4.4.2 Billing..........................................................................................................................75 4.5 Virtual Network Operator..............................................................................................75 4.5.1 Compatibility..............................................................................................................75 4.5.2 Billing .........................................................................................................................75 4.6 OSS platform provider....................................................................................................75 4.6.1 Scalability....................................................................................................................75 4.6.2 Plug and Play..............................................................................................................76 4.6.3 Availability..................................................................................................................76 4.6.4 Open Interfaces...........................................................................................................76 4.6.5 Tracing........................................................................................................................76 IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  5. 5. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 5 of 98 4.6.6 Usage Format .............................................................................................................76 4.6.7 Usage Measurement....................................................................................................76 4.7 Non Functional Requirements on OSS..........................................................................77 4.7.1 Interoperability............................................................................................................77 4.7.2 Scalability....................................................................................................................77 4.7.3 Evolution/Migration....................................................................................................77 4.7.4 Backward Compatibility.............................................................................................77 4.7.5 Availability/ Reliability...............................................................................................78 4.7.6 Flexibility....................................................................................................................78 4.7.7 Manageability/Serviceability......................................................................................78 4.7.8 Data Accessibility/Integrity........................................................................................79 4.7.9 Multiples OSSes..........................................................................................................79 4.7.10 Federation of OSSes..................................................................................................79 4.7.11 Loosely Coupled OSSes............................................................................................79 4.7.12 Processing/Storing Data............................................................................................79 4.7.13 Security.....................................................................................................................80 4.7.14 Legacy integration.....................................................................................................80 4.7.15 Transactions..............................................................................................................80 4.7.16 Implementation.........................................................................................................80 5 CONCLUSION ......................................................................................................81 6 REFERENCES.......................................................................................................82 ANNEX 1 TERMINOLOGY.......................................................................................83 ACRONYMS.............................................................................................................88 ANNEX 2 THE ETOM BUSINESS PROCESS FRAMEWORK...............................91 A2.1 The Conceptual View...................................................................................................91 A2.2 The CEO View..............................................................................................................92 A2.3 The Operations Area....................................................................................................93 A2.4 Process Decomposition.................................................................................................94 A2.5 Process Flows................................................................................................................95 A2.6 Summary.......................................................................................................................97 A2.7 References.....................................................................................................................98 A2.8 eTOM Acronyms..........................................................................................................98 IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  6. 6. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 6 of 98 1 Introduction This is the second deliverable from the IST project AlbatrOSS. The objectives of the project are: • To specify an innovative 3rd generation (3G) operations support system (3G OSS) architecture applicable to an open 3G Mobile telecommunications environment. • To develop a set of OSS building blocks to support rapid service creation, provisioning and maintenance of mobile Internet based services. • Validation of the architecture and OSS build block design through trials implementations The first step in developing the architecture is to develop an understanding of how 3G networks and services will evolve. . This understanding will be achieved through the process of capturing requirements from the main business players involved in the delivery of 3G network and services. The changing technological and business environment is altering the way people work, live and play. The growth in the popularity and usage of (GSM) mobile phones and the Internet provide some indication of society’s expectations from 3G networks and services. The starting point for system analyses and the initial architecture work is the collective expertise within the project partner organizations. The project partners represent the key players within any future 3G service marketplace and have collected substantial intelligence on customer market expectations and its technological evolution. Using this expertise, the project has produced a number of typical 3G enabled residential and business scenarios and associated business models, which help to articulate a set of requirements on 3G Operations Support Systems (OSS). The business models reflect the work of key industrial fora such as TMForum and UMTSForum. The project has concentrated its effort on the development of scenarios for both the virtual home environment and the work environment. Research areas of particular importance to the delivery of a 3G service environment are roaming, billing and the role of VHE to support constant customer 3G service access. Scenarios addressing all of these areas are presented.The scenarios reflect an emerging 3G value chain of multiple service providers, network providers and customer end-users. The second half of the deliverable identifies a set of 3G OSS requirements from the perspective of each of these players. These are mainly functional requirements and, in addition, the project specifies a set of non-functional requirements such as OSS availability, extensibility, data accessibility/integrity, legacy systems etc. These scenarios and business models provide a concrete framework for capturing 3G OSS requirements (through the use of questionnaires). The outcome of this activity will be used to evolve the scenarios and business models over the lifetime of the project. The project workplan commenced with two parallel activities. The first activity addresses system analysis, requirements capture and business models (Workpackage 2) and the second addresses the specification of the initial 3G OSS Architecture (Workpackage 3). The set of 3G OSS requirements identified in section 4 provide input to the architecture specification work in workpackage 3. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  7. 7. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 7 of 98 1.1 Deliverable Structure The deliverable is structured as follows. • Chapter 2 presents an overview of the 3G Market environment and the resulting 3G services, which will be delivered by that environment. • Chapter 3 presents the scenarios that have been developed by the project. The scenarios address the needs of both the Virtual Home Environment and the work environment. Particular emphasis is given to scenarios addressing roaming, service accounting and VHE services functionality. • Chapter 4 summarises the key OSS functional and non-functional requirements resulting from the scenario descriptions. The functional requirements are described from the perspective of the key players (customer, service provider, network operator, platform provider etc). • Chapter 5 provides a conclusion and a summary of the relationship between the content of this deliverable and the AlbatrOSS workplan. 2 3G market overview The drive behind the 3G network roll-out remains a vision of an information society with readily available online services empowering and enriching the lives of people living in the society. The transition from second generation networks to third generation mobile networks is a transition from mobile voice communication to a multi-media IP-based network, with multiple and diverse usage patterns. Not only will the emergence of 3G mobile networks provide a marriage of 2G human-to-human communication and today’s Internet-based information exchange, but it will also provide facilities for entirely new services not possible with current network technologies. In Figure 2-1 (from [ausystems01]), 3G is shown as changing the focus of telecom services. Human-to-human voice communication will remain a significant and central service, but content and services that are human-to-machine, machine-to-human and machine-to-machine will take on an increasingly important role in the 3G service portfolio. Figure 2-1: A Change in Telecom Services IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  8. 8. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 8 of 98 The change in service portfolio and the changing demand of the telecom service user will force the traditional telecom service providers to re-evaluate their business roles and scope within the categories shown in Figure 2-2 (from [ausystems01]). Figure 2-2: A New Business Scope Several attempts have been made to describe business roles in a 3G service environment. One model from UMTS distinguishes players based on the transaction flows. Today’s operators will most likely fill a number of these roles, but also other parties will enter the scene. Figure 2-3: 3G Business Roles The introduction of 3G networks and the anticipated 3G services will have a severe impact on the mobile network value chain, which today is centred around the network operator, who currently captures more than 90% of the market revenues and where the main body of revenues are coming from voice-based services. The growth of multimedia Internet-based services will introduce new players and shift the revenue sources from the basic bearer service to other value added services. The basic transportation of bits will increasingly become invisible to the user. It is clear that revenues, to a growing degree, will be diverted to market players other than the traditional players. The revenue streams and the division of profits will be highly dependent of the business models adopted by the market. In its discussion of potential business relationships, UMTS Forum has focused on three different models [UMTS1002]. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  9. 9. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 9 of 98 • The fragmented model, in which separate market players keep the business roles. The task of offering the end-user a coherent service package and simple commercial interfaces may be difficult to fulfil; • The partnership model, in which the market players having the main roles mentioned above are co-operating in an organised way. Competition issues will be important in this model; • The ownership model, in which the main roles are owned by one organisation. The responsibility for providing end-user services will be clear, but sufficient competition has to be maintained. This model has to allow additional partnership and/or additional service offerings from independent providers, e.g. end-user access to other portals and other content providers. With the recent development in the global telecom sector, it is likely that the partnership model will be the dominating model in the future 3G landscape and that the sector will see an increased number of business partnership between traditional players in the field and also with entities outside the telecom sector. To accelerate and focus the move towards a common 3G service platform, the UMTS Forum has provided a vision of the concept of an IP Multimedia Subsystem (IMS) and has agreed on the following definition of IMS [UMTS2002]. IMS is understood to be an evolution of IMT-2000 technology, which brings: • The ability to deliver person-to-person real-time IP-based multimedia communications (e.g., voice), • The ability to fully integrate real-time with non-real-time multimedia and person-to-machine communications, • The ability for different services and applications to interact, • The ability for the user to very easily set up multiple services in a single session or multiple simultaneous synchronised sessions. The IMS is perceived by the UMTS Forum as providing a robust service to integrate multimedia activities and allow services to interact with each other. The integration and interaction of media types will open up new possibilities for richer services than are available today. With the emergence of IMS based services, the increasing user demands and the anticipation of the partnership model becoming the dominating business model in the 3G service offering, it is vital that the players in the 3G field are capable of combining their values in composite services, and that these services can be assembled quickly and seamlessly, when a demand emerges. A flexible and reliable B2B environment will be key to the success of 3G network and services. With the emergence of IMS based services, the increasing user demands and the anticipation of the partnership model becoming the dominating business model in the 3G service offering, it is vital that the players in the 3G field are capable of combining their values in composite services, and that these services can be assembled quickly and seamlessly, when a demand emerges. A flexible and reliable B2B environment will be key to the success of 3G network and services. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  10. 10. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 10 of 98 2.1 3G Services The introduction of 3G networks with multimedia and broadband features opens the door for innovative services promising to provide a truly different user experience on mobile devices. The user will be presented with a service portfolio, which will be greatly enhanced compared to second generation networks, and new services will have a significant impact on the lives of both the private and business user. To structure the debate and to provide a tool for accessing the potentials and feasibility of the 3G Services, the UMTS Forum has provided a framework for categorising and studying the near-term (2001 – 2010) 3G services. As illustrated in Figure 2-4, data services are divided into two main groups: content connectivity and mobility. Content connectivity is then divided into two sub-groups; mobile Internet access and mobile intranet/extranet access. Mobility on the other hand is divided into three sub-groups; customised infotainment, multimedia messaging service and location based services. It is believed that the six service categories will represent the majority of demand for 3G Service in the near future (2000 – 2005). Figure 2-4: 3G Service structure The UMTS Forum elaborates on the service descriptions as follows. Mobile Internet Access A 3G service that offers mobile access to full fixed ISP23 services with near-wireline transmission quality and functionality. It includes full Web access to the Internet as well as file transfer, electronic mail (e-mail), and streaming video/audio. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  11. 11. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 11 of 98 Mobile Intranet/Extranet Access A business 3G service that provides secure mobile access to corporate Local Area Networks (LANs) and Virtual Private Networks (VPNs). Customised Infotainment A consumer 3G service that provides device independent access to personalised content anywhere, anytime via structured-access mechanisms based on mobile portals. Multimedia Messaging Service A consumer 3G service, that offers real-time, multimedia messaging with always-on capabilities allowing the provision of instant messaging. Targeted at closed user groups that can be services provider or user-defined. Location-Based Services A business and consumer 3G service, that enables users or machines to find other people, vehicles, resources, services or machines. It also enables others to find users, as well as enabling users to identify their own location via terminal or vehicle identification. Rich Voice A 3G service that is real-time and two-way. It provides advanced voice capabilities (such as Voice over IP (VoIP), voice-activated net access, and Web-initiated voice calls), while still offering traditional mobile voice features (such as operator services, directory assistance and roaming). As the service matures, it will include mobile videophone and multimedia communications. A key component in the 3G service offering will be mobile portals. Mobile portals will deliver content-rich mobile service, with controlled access, billing and support services. It is likely that mobile portals will be a unifying service, providing access to messaging, infotainment as well as location-based services. In the 3G service offering landscape, mobile portals will be a focus for competition and partnership. The Virtual Home Environment, discussed in more detail in the following chapter is seen as another important concept in the 3G services offering that spans across multiple of UMTS Forum defined service categories. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  12. 12. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 12 of 98 2.1.1 The Virtual Home Environment 2.1.1.1 The Concept …"a concept for Personal Service Environment portability across network boundaries and between terminals. The concept of the VHE is such that users are consistently presented with the same personalised features, user interface customisation and services in whatever network and whatever terminal (within the capabilities of the terminal and the network), wherever the user may be located" This is the definition of VHE from the 3rd Generation Partnership Project. It is an innovative concept that emerged within a context where the variety of terminals and the network capabilities increased rapidly. The user is offered services that appear the same no matter which terminal the user has and no matter where the user is located. VHE will boost the provision of multimedia content and value added services through the 3G networks. But at the same time, VHE will need multiple and flexible interfaces between the different players in the 3G market. Interoperability will be required between fixed, mobile, satellite, private and public networks, and other traditional service players such as Internet service providers, finance, entertainment and content provider companies. This will lead to the definition and implementation of harmonised systems for billing and customer relationship management (CRM). This will impact on the traditional OSS's used up to now. The emerging of 3rd generation networks should enable the existence of much more attractive VHE services for the end-user that should accomplish the following requirements: Personalisation of the Service Environment: The user should have the chance to choose the networks and the terminal as well as the user interface. Adaptation of the Service Environment: The service should be able to run on different terminals regardless of capabilities of each of them. Service Portability: VHE will permit the negotiation of services, in a transparent way for the user, including software downloading, in order to provide a “home-like” service when roaming to a different network. The service should have the same look and feel no matter if the user is accessing the service from his home network or from an external one. Session mobility: The user should have the chance to suspend the session he has on a particular terminal and resume it on another terminal. However, the key matter in developing this kind of services is the way to create, manage and provision them. The OSS that is to be developed within AlbatrOSS project will take into account the above requirements. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  13. 13. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 13 of 98 2.1.1.2 Services The following list of services represents typical 3G services: - Asymmetric multimedia services, which tend to be bursty with moderate data rates. They are considered as “connectionless” services and are billed on a per Mbyte basis, this kind of services could be divided into both Medium and High data rate services: - Medium data rate services: The typical file size is 0.5 Mbytes, The following applications could be highlighted: ♦ LAN, and Internet/Intranet access. ♦ Application sharing (collaborative working) ♦ Interactive games ♦ Lottery and betting services ♦ Sophisticated broadcast and public information messaging ♦ Simple online shopping, banking (electronic commerce) services. - High data rate services The typical file size is 10 Mbytes, The following applications could be highlighted: ♦ Fast LAN, and Internet/Intranet access ♦ Video clips on-demand ♦ Audio clips on-demand ♦ Online shopping. ♦ Symmetric multimedia services, which require a minimum delay and continuous, high- speed data rates. These services are billed on a per minute basis. The following application could be highlighted: - Video telephony and videoconferencing - Collaborative working and telepresence. Residential services applied to the 3G Networks There are many services that can be delivered to the end user within a home or an office environment that the user might need to take with him while he is away. The user might want to be able to watch his house with cameras in the home either with his PDA while he is on holidays on the beach or with his computer connected to the Internet while he is working in his office. This is just an example of a service that could be attractive for the end-user. Moreover, some kind of grouping of services could be made in order to define services that can define VHE services. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  14. 14. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 14 of 98 The following are just some examples: Home Control Services: The user is able to access his house not only for managing devices such as lights, but also white-goods, multi-media devices, meters and any other device that can be controllable within the house and what is more, the user is able to program all of them. The information can be accessed from inside the house using local area networks or outside the house using other networks. The user can access the services with several terminals such as PDA, PC, etc. Alarm Services: Information about motion detectors, water or gas leaks, amongst others can be received no matter where the user is and what terminal the user wants to use. Tele-work: The user has information accessible no matter where the user is or the network the user is utilising to access his documents. Health care: A patient can be sent home after having surgery and vital signs can be controlled by a nurse at home or by a doctor at the hospital. A doctor can receive further information such as the patients' medical history by means of a PDA while visiting the patient at home or through a PC at the hospital. These are just some examples of services that can be developed within the VHE context, there are many others, and they all have common features such as user authentication, billing, user profiles and service management that should be solved by the OSS. 2.1.2 A 3G Service Case Study The following paragraph provides a case study on a 3G service scenario. The case study analyses the business model of a traditional operator and its subsidiaries in the context of the forthcoming 3G service offering. Services proposed by Mobile Network Operators or Service Providers France Telecom Group Basic services that MMS, SMS Can be provided by Next generation Mobile Network Operators Web browsing Orange GSM voice GPRS (Mobile EDGE Network UMTS Operator) Infotainment 3G portal France Telecom End User Infrastructure Visio Conference RTC DSL, … P Wanadoo o RTC E-mail r (ISP) ta DSL l Independant Service Voice Provider Basic services Provided by Web browsing Mobile An ISP Virtual E-mail Network Operator Figure 2-5: End-user access to services IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  15. 15. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 15 of 98 Infrastructure provider level: The infrastructure provider owns a physical network and rents it to network operators. The backbone of the network can be accessed via wired (RTC, DSL, xDSL…) and wireless protocols (GSM, GPRS, EDGE, UMTS…). Its income consists of operators network rentals and a billing on usage (elapsed time, amount of downloaded and uploaded data…). Network operator level: For its mobile and Internet activities, France Telecom owns mainly 2 subsidiaries: Orange and Wanadoo. When 3G is mentioned, it deals generally with forthcoming high speed wireless technologies with a reliable quality of service, close to existing high speed wired ones. Actually, high speed wired technologies appeared around two years ago and connected most towns, even small ones. To use such a connection, one must have a computer with Internet access. With DSL, we can consider ISPs (Wanadoo in our example) that already have new generation portals with added value services. With forthcoming 3G, mobile operators (here Orange) will provide the same types of services as high speed ISPs but with an advantage of mobility and a cheaper terminal than a computer, so the number of Internet accesses is expected to increase significantly. Moreover, with only one subscription, mobile operators will ensure voice transport and Internet access when two different subscriptions will be needed for people who keep a wired Internet access for same services (1 subscription for the mobile phone + 1 subscription for wired Internet access). In other words, mobile operators will reach and even take customersfrom ISPs. In our example, it is easy to see that France Telecom subsidiaries might become rivals on this market. To provide 3G related services, Orange will have to develop a 3G portal. To avoid this, we could imagine Orange merging its 3G portal with Wanadoo’s one. But to do so, an intervention from France Telecom (majority shareholder of both companies) would be needed to dictate the 3G portals merging of the two companies. This is a difficult point that telcos cannot answer for the moment. If a business model demonstrates that money can be gained this way, shareholders might put pressure on historical operators (like France Telecom) to merge their subsidiaries. The incomes of mobile operators may be generated by: o User subscription o User consumption based on basic services (SMS, MMS, web browsing…) o Voice IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  16. 16. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 16 of 98 o A deduction from service providers’ incomes (right of way, see below) o A rental of the network to mobile virtual network operators (see below) o The investment of the money from prepaid cards o Advertisement Service Provider level: First of all, what is the difference between a network operator and a service provider? • A network operator provides full commercial service connection to the network. Examples are AOL, Tiscali, Wanadoo … • A service provider is specialized and can be accessed by a connection provided by a network operator. A service provider generally manages a specific content. It can create this content or simply make it available on the network. Services can be search engines, information, hosting… Identifiable types of services include: o SMS and MMS o Infotainment (information, games, etc…) o Visioconference Video Conference o E-mail o VPNs Network operators will directly provide some services (SMS, MMS, e-mail, etc) but service providers will provide more specific or enhanced ones. The income of service providers may be composed of: o A bill on usage basis for MMSs, SMSs and e-mails (sending with charge of admission, free for receiving), for games, geo-localisation… o A bill based on elapsed time and quality of service for Visio conference. o Advertisement o Subscriptions for some sites In the case of a 3G portal, it is interesting to survey how to invoice according to the way you access the service. Let’s imagine a company providing a 3G wired (DSL) and wireless access portal. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  17. 17. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 17 of 98 The invoicing will depend on how services are accessed, as the following table demonstrates: Service Wired access Wireless access E-mail Free Bill on usage basis SMS, MMS Depends on the policy of the Bill on usage basis for company sending, reception for free Internet browsing Free Bill on transmitted packets Voice Free (between DSL Bill depending on time connected computers) Visio conference Free Bill depending on time and quality of service Infotainment The user could be billed for Same as wired access most of the infotainment services. Advertisement- based services should be free to the end user. Mobile Extranet/Intranet The corporate could receive a Same as wired access consolidated bill for all employees. Extranet partners get their own bill. According to invoicing, we should consider two types of service providers: 1. Service provider contracted with a network operator: The portal will invoice a percentage commission on services. If WAP failed in Europe, it’s mainly because the technology was over-sold to the detriment of services. Another cause comes from relationships between operators and service providers/content providers: mobiles operators did not yet enter in agreement for resource sharing. In Japan, the success of mobile services is mainly due to the cooperative business model between NTT DoCoMo and its service providers for I- mode. The Japanese network operator deducts a commission of 9% on services offered on its portal. In Europe, only Deutsch Telekom announced the same type of business model for its portal T-Motion.In this case, the price of the service is included in the bill sent by the network operator. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  18. 18. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 18 of 98 Figure 2-6 is an illustration of such kind of relationships in the entertainment context. Mobile Network Operator Portals Orange Games distribution Game company (eg : company (eg. : Telefonica Sony Pictures Wireless Services) Moviles Entertainment) T-Online Figure 2-6: Sony Wireless Services value chain Sony Pictures Digital Entertainment (SPDE) announced in March 2002 the creation of Wireless Services, a new group to distribute new applications, games and entertainments. Wireless Services will distribute its products to consumers thanks to partnerships with mobile network operators, terminal manufacturers and infrastructure providers. In addition, to re-use the features of the film library of Sony Pictures entertainment (cinema an TV), Wireless Services will work with SPDE Europe, to integrate mobile worldwide market, and with Sony Online Entertainment to extend its game library to mobile sector. 2. Service Providers that prefer to stay independent from network operator’s portals and only use their network, becoming Independent Service Providers. It could be the model of pay-per-view TVs: whatever type of connection, the bill for the service is directly sent to the viewer. Mobile Virtual Network Operators: To make their investments cost-effective, mobile network operators will be able to rent their network to mobile virtual network operators (MVNO). MVNOs negotiate communication time and data quantities to reach market niches. There are many who believe that the MVNO’s status is the best way to integrate the closed circle of operators that cannot afford a UMTS licence in Europe. The interest is that they do not have to pay for the licence, nor for the infrastructure, so they only have to concentrate on their marketing offer. Hutchinson Whampoa, a conglomerate from Hong Kong, obtained access this way to a licence in the United Kingdom and soon in Ireland, Italy and France. The best example up to now is the example of Virgin Mobile in UK. Virgin only invested 50M US$ to exploit a part of One2One network and, the day after, the society was evaluated at 1 billion US$. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  19. 19. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 19 of 98 Conclusion: As a conclusion, several questions could be asked: 1. Since Mobile Network Operators will be able to provide Internet access thanks to 3G, will they become rivals with ISPs? 2. In this case, what would be the reaction of historical operators that own ISPs and mobile network operators? Would they merge their subsidiaries to propose a unique offer and a unique 3G portal? 3. Will MVNOs be the only ones able to propose a 3G portal for wireless and wired accesses? 4. Will UMTS licences owners rent some bandwidth to MVNOs? 5. If some don’t, what will be the reaction of European Commissions? 6. And how will EC be able to push such a model? 2.2 3G Value Chains Before 3G, the mobile environment provided a limited set of services, mainly of the same type, and was dominated by the mobile network provider who “owned” the customer. Other players had only a limited role and have been restricted by lack of a relationship with customers. This has been changing as the mobile environment has developed but only slowly compared with what is expected with 3G. More types of service are already becoming available and the need to provide content-rich services is opening the market up to content providers, although mobile network providers still have the largest customer base. 3G is changing the context by providing support for services and not the services themselves. All types of services will be available over the same network, whether data, voice, or multimedia. It has been forecast that over 3000 services and applications will be running over mobile networks by 2005, and many of these will be created by companies that did not exist previously [Durlacher00]. ADVANCED MOBILE SERVICES VALUE CHAIN Network Network Equipment Services Distribution Software Terminal ISP Content Portal Payment Application Device WIRELESS VOICE VALUE CHAIN Network Network Software Terminal Payment Distribution Equipment Services Application Device New components Significantly different components Figure 2-7: The Advanced Mobile Service Value Chain and the Wireless Voice Value Chain IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  20. 20. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 20 of 98 As shown in Figure 2-7 (from [Deloitte02]), the advanced services that will be available in 3G create a more complex value chain than that for wireless voice. Not only are there additional components in the chain, many of the existing components will be significantly different. This creates new relationships between additional players, such as wireless ISPs, content providers and portal providers, who will play a more significant role in a 3G environment. The role of new players will become stronger as those owning popular services will be able to develop and manage them independently of the mobile network providers, and thus establish their own relationships with customers. The introduction of these new players, and the opportunities for them to offer different services, provides a more competitive situation where the focus will gradually shift from the mobile network providers to the customers. As shown in Figure 2-8 (based on [Durlacher99]), many new players will be involved in the mobile value chain and their role will become increasingly more significant. Infrastructure Service/ Technology Service/ Mobile Mobile Mobile & Application Content Content Handset Application Platform Platform Portal Network Service Customers Equipment Developers Providers Aggregators Vendors Vendors Vendors Providers Providers Providers Vendors Figure 2-8: A Mobile Value Chain New business models are emerging to support the wide range of services that will be on offer and mobile network providers will no longer be able to maintain their dominance as in the case of “single service” delivery. Providers of the different services will have to work together in many different relationships and, in fact, the linear value chain no longer adequately reflects the interdependencies between the various players. In a value web, relationships need to be established between a variety of players in order to satisfy customer requirements (see Figure 2-9). No one provider can offer an end-to-end solution and so competition will tend to be between value webs rather than merely between individual providers. This means that partnerships are crucial to service providers in any kind of value web or chain configuration regardless of the role that the provider is playing in the configuration. 3G is acting as a trigger to this development and forcing the traditional telecommunications players to seek alliances and partnerships with the newly emerging players, in order to remain attractive to customers, by offering a broad range of services from different providers. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  21. 21. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 21 of 98 Mobile Service Providers Service/ Mobile Application Developers Network Providers Infrastructure & Customers Equipment Mobile Vendors Portal Providers Content Providers Virtual Service/ Mobile Application Network Platform Providers Vendors Figure 2-9: A Hypothetical Mobile Value Web Clearly, there is a need to support such value chains, and particularly to manage them. Relationships have to be established, contracts agreed upon, performance monitored and problems resolved. In addition, revenue-sharing arrangements are an important issue in a 3G environment as the number of players in a value chain implies that revenue from the customer must be distributed on some kind of agreed basis. When revenue comes from the customer (as opposed to advertising), it must be decided how to charge for the service. This includes consideration for how much the customer is willing to pay for the service, as customers pay for what they perceive to be the value of the services they use and not for how this is translated into data transfer costs [P1145]. This will result in business models, which have already been developing in the fixed and mobile environments evolving further. Although the general conclusion at the moment is that there is no clear certainty about which business models and roles will prevail, it seems that a variety of alternatives will develop and coexist. Some of these business models, as envisaged by the UMTS Forum, are presented below. 2.2.1 UMTS Forum Business Models The UMTS Forum has issued a series of reports investigating various aspects of the 3G/UMTS environment, including the value chains and business models it expects to emerge. The reports mainly concerned with this aspect are [UMTS900] and [UMTS1301], which forecast that the value chain will change rapidly with new players and that new models and partnerships are being created. Multimedia content and other service providers will be the key players in the multimedia value chain, compared with the dominant position of the mobile network providers who have to adopt new business strategies to broaden their role and to defend their competitive position. Three business models are considered most likely to emerge: IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  22. 22. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 22 of 98 • The Access-Focused Approach offers mobile and IP network access and other services. The customer-facing service provider is close to the traditional role of network operator as it is acting as a pipe, providing access and transport services together with the ISP function, so that revenue comes only from ISP subscription and airtime. The service provider has a direct relationship with the user but does not provide third-party billing or content aggregation services and so cannot share in additional revenue opportunities such as advertising, premium subscription or content aggregation services. • The Portal-Focused Approach offers access to the mobile and IP networks and selected partner content via a mobile portal. The customer-facing service provider is involved in the provisioning and distribution of content and provides content aggregation and third- party billing. Revenue sources include subscription, airtime, transaction fees and advertising. Revenue-sharing arrangements are still being explored. • The Mobile Specialised Services business model offers specialised services targeted to a specific market that are not necessarily internet-centric. The services can be offered by themselves or as part of a service bundle. They can be offered by Access-Focused or Portal-Focused 3G service providers but also by other content aggregators and ASPs. Revenue sources include airtime, messages, subscription, advertising, transaction and messaging fees. Figure 2-10: Critical Chain Functions Provided by 3G Industry Players Figure 2-10 shows the positioning of the various approaches along the value chain. The business model adopted will influence the relationships of the players in the value chain and how they cooperate. In all cases, however, partnership with other providers providing 3 rd party and complementary services is assumed. This is particularly the case in the Portal-Focused Approach where the Mobile Portal Provider needs to establish business and management relationships with the providers of the services that are available via the portal. Portal providers are not necessarily mobile network providers and can be partners with, or competitors of, the mobile network providers, depending on which business models and distribution channels are adopted [Bond00]. 2.2.2 Implications for AlbatrOSS The greater interdependencies between service providers that the mobile environment in general, and 3G in particular, is demanding have important implications for management and IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  23. 23. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 23 of 98 OSSs. First, the variety of services to be supported in an end-to-end manner is much greater than in previous generation mobile environments. With competitive pressure increasing, the quality of the services offered and customer perception of this quality will play a significant role in maintaining customer loyalty and minimising customer churn. In addition, service providers will have to cooperate with each other to a greater extent and in a greater variety of ways to support these 3G services satisfactorily. Service provider OSSs need to interoperate to support the requirements of mobility and roaming for 3G services and current OSSs are not capable of supporting such an environment. AlbatrOSS needs to consider the OSS components that are required in order to enable service providers to cooperate in such 3G value chains to deliver and manage 3G services rather than consider merely the components required for an individual service provider's OSS. 2.3 Market Analysis The VHE concept reflects the most important movement in the portal area with the emergence of the multi-access portal concept. In [Ovum02], the multi-access portal is defined as: “a portal that can be accessed through two or more delivery networks or devices, such as a PC, a mobile handset, a PDA, TV or voice, and that provides similar (or the same) consumer-focused services through use of an integrated back-end. It should provide the same brand and, as far as possible, the same ‘look-and-feel’ on each access channel. However, services and the user interface need to be adapted to the context in which the user accesses the portal”. Some established operators have been setting up their portal strategies based on the multi- access concept. For example, Vodafone in partnership with Vivendi Universal have developed Vizzavi, which they claim to be the first multi-access portal in Europe. T-Mobile has underpinned its strategies by through the introduction of T-Motion at the beginning of the year. Ovum forecasts that the global revenues from multi-access consumer portals will be more than $69 billion in 2002, compared with $7.4 billion in 2001 (see Figure 2-11) Figure 2-11: Global multi-access consumer portal revenues (source [Ovum02]) IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  24. 24. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 24 of 98 The proportion of mobile access will increase to 29% of revenue in 2006, compared with 2% in 2001, however fixed line business will retain its dominance of the telecoms revenue - 46% by 2006. In relation to regional revenues, Asia-Pacific will lose its current leading position in the mobile portal sector. While Western Europe and North America will expand their business in this sector as indicated in Figure 2-12. Figure 2-12: Regional breakdown of total mobile portal revenues (source [Ovum02] ) From a technology point of view, multi-access portals will require inter-working across suppliers in the value chain, in terms of both applications and platforms. Currently, the technologies to achieve this inter-working are still in infancy. Suppliers will continue to use existing platforms and applications, based on the multi-network and multi-applications concepts, until 2005. The “true” multi-access technologies will mature by 2005. They will implement then “true” VHE-based applications/platform while also supporting integration with legacy systems. The development of a 3G OSS within AlbatrOSS, must consider this migration process. Therefore, most operators will focus their development strategies for next generation portals on the multi-access portal concept, or, in other words, on the VHE concept. This strategy will depend on the business success of multi-access portals and not on technological advancement. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  25. 25. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 25 of 98 3 VHE Scenarios This chapter presents scenarios illustrating various aspects of a VHE as defined by the 3rd Generation Partnership Project (3GPP) concepts introduced in chapter two. They aim to show the diversity of a VHE by highlighting different services, different uses and different contexts. In each scenario specific reference is made to the VHE aspects of personalisation and mobility support addressed by the scenario. In addition, the scenario descriptions include references to the management and operations business processes required by the scenario. As many of these processes are part of the eTOM Business Process Framework, a short overview of eTOM is given in section 3.1 as an aid to understanding. A fuller overview of eTOM is provided in Annex 2. 3.1 eTOM eTOM is a business process framework that has been developed within the TeleManagement Forum [GB921]. It encompasses all the enterprise processes required by a service provider in the information and communications services industry and analyses them at different levels of detail according to their significance and priority for the business. eTOM has evolved from TOM [GB910], which provided a framework for operations management processes in the telecommunications industry. eTOM has been developed to make the TOM framework more appropriate to a dynamic marketplace with Internet and e-Business opportunities and requirements. TOM has therefore been extended to encompass all enterprise processes, including enterprise management, strategy, infrastructure and product concerns. Business relationships are now covered by an additional layer for supplier/partner relationship management, as such relationships have become so much more essential to a service provider when delivering services. This is particularly true in a 3G environment where relationships between a variety of providers will be required to provision and deliver end-user services. The need to manage resources across technologies has led to a renaming of Network and System Management to Resource Management & Operations, encompassing application, computing and network resources. In addition, eTOM is adopting a more formal modelling approach to process design which links the eTOM work with the NGOSS system work. The TOM processes are to be found mainly in the operations part of the eTOM framework although TOM processes that were not strictly operations processes, such as the TOM planning and development processes, have been moved to other sections of eTOM. The AlbatrOSS scenarios reference processes located mainly in the operations area and these processes are shown in Figure A2.3 of Annex 2. The descriptions of the eTOM business processes referenced by the scenarios, together with more detailed process decompositions and process flows are to be found in [GB921] and [GB921a]. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  26. 26. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 26 of 98 3.2 Integrated Service Billing Scenario 3.2.1 Context This simple scenario has been defined to attempt to identify how accounting for IP services can be achieved (uses eTOM terminology). WIT is not overly interested in developing the services used but rather in developing the federated accounting solution to allow the providers to charge for the usage of their respective services. The scenario is set in the context of an intermediary bundling of standalone services to create a new service offer. The intermediary (Online Collaboration Service (OCS) provider) makes money by charging the customer more than the sum of the consideration to be passed back to the participating Third Party Service Providers. 3.2.2 Storyboard - A Collaborative Working Service Usage Scenario Dr. Duff is travelling by train from Paris to a medical conference in Berlin. Dr. Duff has recently taken an x-ray of a patient’s spinal injury. Dr. Duff wishes to consult with Dr. Keane (a specialist in spinal injuries) about the x-ray. Dr. Duff is currently viewing the x-ray image on his laptop which is fully integrated into the VHE environment. Dr. Duff is aware that Dr. Keane is also travelling to the conference and suspects that she may be travelling on the same train. Dr. Duff consults his smart phone service portal and initiates the ‘locate a friend’ service to determine if Dr. Keane is on the train. This service consults Dr. Duff’s user profile from a user profile provider and generates a ‘buddy list’ that includes Dr. Keane. The ‘find a friend’ Location Based Service (LBS) sub-service then uses the location information of the Network Opertator’s UMTS Location capability server or the Global Positioning System (GPS) chip in both doctors’ smart phones to determine the proximity of their owners. The service reports that Dr. Keane is over twenty kilometres away, and hence is not on the train. Dr. Duff then consults another Internet service portal on his laptop. Dr. Duff opts to use an Online Collaboration Service (OCS) to consult with Dr. Keane. Dr. Duff initiates the OCS service and places an OCS (VoIP) call via his laptop and headset to Dr. Keane. Dr. Keane is currently travelling to the conference in a colleague’s car when his laptop rings to indicate an incoming OCS call. Dr. Keane answers the call and joins the OCS session. Dr. Duff uploads the x-ray image to the OCS content viewer that allows both doctors to simultaneously manipulate the image. Both doctors discuss the x-ray by pointing tohighlighting various parts of the x-ray image etc. When a diagnosis and prognosis have been reached, both doctors terminate the usage of the OCS. Description There are two types of services used in this scenario, a LBS (locate a friend) and a Collaborative Working Service (OCS). There are two sets of devices used, smart phones and laptops, both of which require 3G enabling through the integration of Bluetooth/GPRS/ GSM /UMTS/GPS/Satellite/WLAN chips etc. Both services require some form of an access network to obtain connection to the service network. In the case of both sets of devices, this may be achieved through one of the aforementioned technologies. The ‘locate a friend’ service is an LBS offer that is achieved by composing GPS and user profiledirectory Third Party Services. The OCS collaborative working service is an offer of VoIP and Content Viewer Third Party Services. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  27. 27. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 27 of 98 3.2.3 Business Analysis In a competitive 3G services environment, it is not practical to expect either the ‘locate a friend’ or OCS intermediaries to individually develop the constituent components of the service offer that they advertise. The 3G environment forces these intermediaries to heavily integrate the standalone services of Third Party Service Providers in order to provide new services that fulfil emerging ebusiness requirements, which are then advertised through a service portal. 3.2.3.1 Stakeholders Third Intermediary Party Customer Service Service Portal Provider Complementary Provider Figure 3-13: Stakeholder Roles Customer - represents the organisation or individual who subscribed to the Intermediary and has access to the portal service. It includes the role of user of the portal service also. The customer can subscribe to services proposed through the portal. However, the Customer interacts only with the intermediary. Intermediary – service portal provider that offers OCS and Locate a Friend services Third Party Service Providers – GPS, User Profile, VoIP and Content Viewer providers Complemetary Provider – Rating Bureau Service (RBS) provider. The RBS provides an accounting service to the intermediary that determines the charge to be invoiced to the customer and the settlement to be paid to the Third Party Service Provider. 3.2.3.2 Business Processes Reference 3.2.3.2.1 eTOM reference This scenario is related to the Billing vertical customer operations in the Level 1 Processes of the eTOM Business Process Framework. The scenario can also be further mapped to the following Billing sub processes in Level 2: Service management & operations - service and specific instance rating processes. The rating of usage records for each of the providers (GPS, VoIP etc.). IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  28. 28. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 28 of 98 Resource management & operations - resource data collection, analysis and control processes. The collection of usage records for aggregation and rating to bill Dr. Duff. Supplier/partner relationship management – SP settlement and billing management and SP Interface Management. The establishment of standard interfaces to allow the intermediary, Third Party Service Providers and RBS to exchange Dr. Duff’s usage records and the related settlement by the RBS back to the relevant providers. 3.2.3.2.2 Assurance Service Assurance processes will rely on information provided by the Intermediary Service Portal for service capability mediation. Assurance processes will take into account change in terminal capabilities and the (corresponding) SLAs. 3.2.3.2.3 Billing WIT is specifically interested in how these services are charged for. The initial steps in evaluating the charge for this service scenario are detailed in the following table: Charging Entity Paying Entity Service Component paid for Local Access NW Dr. Duff Use of Wireless Access Network Provider on train GPS SP RBS for Dr. Duff Use of GPS service top locate Dr. Keane User Profile SP RBS for Dr. Duff Use of User Profile SP to provide buddy list and Dr. Keane’s details to GPS SP Locate a friend SP Dr. Duff Use of ‘locate a friend’ service Content Viewer SP RBS for Dr. Duff Upload, Viewing and manipulation of X-ray by both Doctors VoIP SP RBS for Dr. Duff Dr. Duff’s VoIP call OCS Provider Dr. Duff Dr. Duff’s and Dr. Keane’s use of OCS The complexities of charging for the OCS and ‘locate a friend’ services are quite apparent and hence, generate the requirements for a federated accounting OSS solution between the various charging entities. In this scenario it is presumed that a single Rating Bureau Service (RBS) is used by all charging entities. By stating “RBS for Dr. Duff” it is suggested that the RBS will settle with the relevant provider for Dr. Duff’s usage of their respective service, after it has received payment for the service from Dr. Duff. That is, the VoIP, Content Viewer and OCS service providers send their usage records to a Rating Bureau Service (with whom they have registered). The RBS performs rating on each of these records and aggregates the associated charges into a single OCS charge. When Dr. Duff has paid this charge (may be prepaid) the RBS disperses the payment among the respective charging entities. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  29. 29. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 29 of 98 It is envisaged that the OCS will be one of a set of services offered through a service portal that would be maintained by a service broker. The service broker would populate the portal by integrating services into new bundled services. Part of the service integration OSS would include the registration of each constituent service provider with an RBS. As part of the registration process, service providers would be registered as a member of a bundled service and must provide a charging scheme for their service usage. In addition, the RBS would have a pre-defined record format (IPDR) and set of interfaces detailing how the passing of usage/accounting records between the various providers is achieved. When the RBS receives a set of usage records from a set of providers (related to a bundled service usage), it rates and aggregates them into a single service consumer charge for the bundled service and also determines the consideration to be settled with each of the providers. The end result of the RBS is a set of rated accounting records that can be used to bill Dr. Duff and to settle with the various aforementioned providers. The key enabler of such a federated accounting environment is the definition of a standard service specific usageaccounting record and set of interfaces to support the inter-provider domain generationmediation and passing of these records. 3.2.3.2.4 Security Access control to the services offered by the Intermediary Service Portal is a stringent matter here. The information of the ‘locate a friend’ service should only be accessible by Third Party Service Providers that are properly and securely authorized and authenticated. 3.2.3.2.5 Personalisation Customers must be able to control which of the other customers will be enabled to retrieve personal information about them, such as their location. This personalisation functionality for all such portal and third party services will reside in the Intermediary Service Portal. 3.2.4 Requirements Per stakeholder: Customer The customer’s hardware and software setup must adhere to the portal’s security requirements. The customer must adhere to the SLAs. Intermediary Service Portal The Intermediary Service Portal must meet and sustain the SLAs. The services offered and mediated need to be able to be activated and used regardless of the capabilities of the access networks and terminals used. Personalisation of the services must be managed between the Customer and other external parties. Secure communication must be maintained between all external parties. Third Party Service Provider The Third Pary Service Provider must meet and sustain the SLAs. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  30. 30. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 30 of 98 Personalisation of the services must be enabled by interworking between the Third Party Service Providers and the Intermediary Service Portal. Secure communication must be maintained to the Intermediary Service Portal. Complementary Provider The Complemetary Provider must cooperate with the Intermediary service protal provider to provide the supporting management services that the Intermediary requires. The complementary provider must use standards means for transferring SLA, SLS, Subscription and Accounting information. Secure communication must be maintained to the Intermediary Service Portal 3.2.5 Questionnaire This bundling of Third Party Services highlights the OSS complexities of effectively delivering these ebusiness services and raises a number of questions: How do two providers integrate their services? Is it possible to integrate any kind of services? Can you integrate more than two services? How do these services exchange information? How do you initiaterequest a bundled service? Can you assure a common QoS level between the constituent services? Who actually sells the service? How do bundled service adhere to industry regulations? How do consumers subscribe / do users need to subscribe? How do you achieve authentication and authorisation between the services? How do bundled services affect competitiveness in the market? And most importantly, how do you charge for the service and distribute the income between the constituent providers? IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  31. 31. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 31 of 98 3.3 Service Selection & Deployment scenario 3.3.1 Context In order to attract and keep customers, service providers need to offer new, interesting and useful services. These services can be obtained through in-house development, but typically a service provider will look for existing service implementations created by third parties. For this mechanism to work services must be developed to a standard supported by the SP’s network. Assuming this requirement is met, the SP can have a choice of services to deploy on his network. 3.3.2 Storyboard Service Provider “QoS4U” is faced with falling numbers of subscriber contracts due to increased competition, and is looking for ways to attract new customers. The results of a market study show significant end-user interest in “FindYourFriend”-type of location-based services, so “QoS4U” decides to look for a suitable offer from third party service development companies. They compose a list of requirements and perform a series of small- scale trials with candidate services from various vendors, to reach a final decision on what to buy. After a careful selection and validation process the chosen service is deployed on the “QoS4U” network and added to the service offering towards customers. 3.3.3 Business Analysis From a business perspective it is important for “Qos4U” to have a large choice of services, to reduce pricing and also to avoid vendor lockdown. Furthermore they require a service that distinguishes them from other service providers. Also, to achieve better customer binding and branding, “Qos4U” has a strategy to offer all its services through a “portal” service, which provides personalised, uniform access to its entire portfolio. Finally, “Qos4U” also wants to use their common standards-based Operations Support System (OSS), which provides billing, transaction, logging and failure-reporting services. 3.3.3.1 Stakeholders Customer SC SP Figure 3-14: Stakeholder Roles SP (Qos4U) The service provider wants a low cost, high profit solution that fits with their business strategy and installed service environment. The service environment encompasses on one or more different available service runtime environments, such as J2EE, .NET, etc. The choice to install more than one service environment is closely related to the extra profit and extra costs it will generate. IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  32. 32. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 32 of 98 SC (third parties) Third party service creators will aim to create low cost, high profit services to run in the Service Provider’s environment. They will compete with each other for selling their product through the SP to the Customer. They will compete on costs, the quality of the service and alignment with the SP’s business strategy. The ease and stability of integration and customisation of their service for the SP’s network is another important aspect, which will allow them to distinguish their offerings. Customer Customers that play an active part in trials for service deployment will have the opportunity to determine (part of) the requirements already in an early stage of the services that are being positioned by the SCs and SP. Customers range from single party home users to user groups in joint-ventures of several companies. This will differentiate the focus groups the SPs, causing the proliferation of SPs with different markets and service approaches. 3.3.3.2 Business process reference The initiative to start the described scenario comes from the intersection between the “Strategy, Infrastructure and Product” process and the “Market, Product & Consumer” function at eTOM level 0, in other words typically the marketing department. At level 1 this ends up in the “Product Lifecycle Management” process, which deals with introducing new services to customers. Third parties considered for service offering are determined in the “Supply Chain Development & Management” process, whereas the “Service Development & Management” process provides guidelines and context for service selection. When a service has finally been chosen, the “Resource Development & Management” process must ensure that sufficient resources are available for running the new service, and the “Marketing & Offer Management” process may start announcing the service to potential new customers. 3.3.3.2.1 Billing Two options can be envisioned for billing aspects of service deployment: 1. The Service Provider obtains a license for running the service on his network In this case payment may consist of a fixed percentage of operational income earned via the service, or a fixed monthly amount 2. The Service Provider buys the rights for exploiting the service In this case there will be a one-time transaction cost for the Service Provider In both cases, service deployment may include additional cost for installation / customisation of the service on the network. Also, service maintenance could be outsourced to the service creator by contract. Charging Entity Paying Entity Service Component paid for Service Provider End user Service usage, data transport Service Creator Service Provider % of profit Service Creator Service Provider Service maintenance & upgrades IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  33. 33. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 33 of 98 3.3.3.2.2 Assurance The SCs and SPs must have the same understanding of the technologies used by the services to be deployed. 3.3.4 Requirements - There must be a choice of multiple similar service products from different vendors - The services must be capable of integration with a common standards-based OSS used by the service provider - The services must be “runnable” on the existing hardware platform owned by the SP - The services must be customisable to the SP’s needs and capable of integration with the existing portal  UI with end-users must be standards-based - Service deployment (configuration, maintenance) should be easy and low-cost IST-2001-34780/2/2/1 © AlbatrOSS Consortium
  34. 34. AlbatrOSS Deliverable D2: Business Model and Scenarios Page 34 of 98 3.4 Business Customer Scenario 3.4.1 Context This scenario is concerned with VHE business applications of 3G and provides an example of the kind of tasks that may be undertaken by business people, particularly when they are on business trips and wish to communicate with colleagues and customers as well as access information they require as part of their business. It is intended to demonstrate the kind of support that would be required from a 3G OSS and so provide input for the development of the AlbatrOSS 3G OSS architecture. In particular, the roaming and personalisation aspects of a VHE are illustrated. Jack and Jill are engineers working for the well-known Tasket consultancy. They have at their disposal mobile-connected PDAs, UMTS phones, and laptops. With these, they can manage their personal information, email, calendar and address book, they can use both general and specialist applications, and download statistics, data, maps, information, etc… from Tasket’s technical databases. They can submit reports to their office immediately while out at a client site and obtain the information they require for their work when at a client site. They can also participate in multimedia group conferences as well as jointly collaborate on whiteboard graphics. They can be kept up to date with the Tasket-internal information service, which issues business-wide news flashes to alert employees about customer and technical updates as required. They are using the Nomadic Office Assistant (NOA), a VHE product offered to business customers who require their employees to maintain contact with their working environment while travelling on business for the company. The Nomadic Office Assistant provides employees with many of the facilities they have at their desktop and enables them to maintain contact, keep up to date and communicate with their colleagues and others while travelling, regardless of the kind of terminal they are able to use. It is therefore a typical VHE service for business customers as it provides (within the constraints of the network and terminal) the same personalised features, user interface customisation and services in whatever network the users are located and using whatever terminal users have available. The NOA is a product bundle composed of four individual service components, which together comprise the NOA, i.e. an Office Assistant Service, a Personal Folder Service, Office Application Service(s), and a Travel Assistant Service. Access to the constituent services of the NOA is provided via an office portal. • The Office Assistant Service can be compared with a unified messaging service and provides employees with an electronic office. Facilities offered include remote message access, address book, answer machine, call forwarding, user registration at terminals and/ or locations, synchronous and asynchronous service delivery, automated terminal adaptation, media conversions, call screening, etc. • The Personal Folder Service enables travelling employees to maintain folders and documents that can be accessed while travelling, depending on the accessible user terminal. The employees can structure their folder space as they require. They can create, upload, retrieve, update and delete documents and folders and they are also provided with a search engine that can retrieve documents related to the topic being sought. Documents can be downloaded right into specific applications for reading and working. IST-2001-34780/2/2/1 © AlbatrOSS Consortium

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