SERVICES CONVERGENCE - A NEW CHALLENGE FOR THE OPERATORSPresentation Transcript
OVIDIO MICHELANGELI Technology Innovation WIND Telecomunicazioni S.p.A Mobile Network Bluetooth/WLAN Access Point Bluetooth, WLAN GSM Fixed PSTN and IP Network SERVICES CONVERGENCE A NEW CHALLENGE FOR THE OPERATORS
- MARKET & TECHNOLOGIES TRENDS
- KEY DRIVER TO FIXED MOBILE CONVERGENCE
PATH TO MIGRATE IN A CONVERGENT NETWORK
TELCO PLAYERS INTERNET PLAYERS OUTSOURCER IBM,HP,EDS Manufacturer (Ericsson,Nokia,Alcatel,etc) MVNO (Mobile Virtual Network Operators) Pressure on mobile operators Mobile Operators Voice saturation Data services Mobility (3G,WiFi) Broadband access Wireline Operators Increased competition IP FMS (Fixed Mobile Substitution) FMC REGULATED PLAYERS
Mobile operators are pursuing Fix-Mobile Substitution, FMS offers mobility and simplicity and has already gained some traction in areas with sufficient coverage and service quality. Many customers have already eliminated landline service in favor of mobile communications often reducing the total cost services.
Fix players are instead promoting broadband data services and plan to contrast FMS wit fix mobile convergence (FMC) by integrating in one terminal traditional mobile service with voice over WiFi or Bluetooth for fix environments.
Even Though Fix voice services are reducing, fix voice represent an important market for the telecommunication, bigger than the Fix data.
- Voice and messaging are interesting for Internet Players
The existing ARPU for the Operators are much higher than internet Players.
This service are for the internet players a natural extension of the existing one (For instance E-BAY buyer and seller need to communicate )
NEW COMPETITORS FOR THE OPERATORS
MARKET & TECHNOLOGIES TRENDS
Unlimited voice and new data services increase traffic and revenue
End user application value is unrelated to bit volume
Revenue per bit is dropping, driving need for lower cost transport
TRAFFIC AND REVENUE DIVERGENCE Data Era Voice Era Revenues Traffic Traffic and Revenue Divergence Time
FIXED AND MOBILE OPERATOR REVENUES 0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 BUSD In Western Europe, 7,000 subs leave fixed operators every day Fixed Mobile Sources: Ericsson estimates Voice Voice Data Data
- PSTN VOICE ( Declining slowly )
PSTN Voice will decline due to fixed-mobile substitution & VoIP
- DSL GROWING
DSL is experiencing strong growth
Yankee Group says 15-20% of broadband market is underserved and could use WiMAX.
Growing interest in fixed–mobile convergence (FMC) solutions, particularly
solutions based on dual-mode phones.
- INCREASE OF THE MOBILE MARKET
High penetration of mobile users moving to third generation networks.
Growing Demands for Wireless Data Applications
- STRONG INVESTMENT IN IPTV AND MOBILE TV
IPTV services is growing, with the number of worldwide subscribers set to rocket from 1.6 million to 37.8 million by 2010
Many Fixed operator are launching triple/quad play services
- DIFFUSION OF WI-FI HOTSPOTS
PSTN VOICE REVENUE ARE DECLINING
- 80% of home will still have a PSTN line in 2009.
- VoIp is growing but will still represent a tiny portion of revenues by 2009
TOTAL NUMBER OF DSL SUBSCRIBERS 3Q 2007 Source : Point Topic
WORLD WIRELESS MARKET
MOBILE BROADBAND MARKET
GLOBAL UMTS/HSPA SUBSCRIBERS GROWTH FORECAST Informa Telecoms and Media, November 2007 forecast
Source: Gartner Group , 2006 W EUROPE SUBSCRIBERS (M) 2G Substitude 3G subscribers
Telefonica (Integrated SP) bought O2 (mobile Service provider)
BT (wire line SP) launched “Fusion Services” with the partnership of
Orange UK announced it would begin to offering a wire line services to
Vodafone CEO declared that DSL is in its future.
Vodafone launched home-zone tariffing , which offers users free (or very inexpensive) voice calls from a defined radius from their home, such as Vodafone’s “ZuHouse service in Germany and “Vodafone Casa zero” service in Italy.
FIXED MOBILE CONVERGENCE. - A GLOBAL TREND IN THE DEVELOPED COUNTRIES
KEY DRIVER TO FIXED MOBILE CONVERGENCE
Today, the telecommunications world remains separated into two worlds:
The world of mobile
The world of fixed line communication
with different business models, different networks tailored for their specific purposes, different organizations , and different services .
Fixed Mobile Convergence (FMC) is a transition point in the telecommunications industry that will finally remove the distinctions between fixed and mobile networks.
It will provide a superior experience to customers by creating seamless services using a combination of fixed broadband and local access wireless technologies .
TWO SEPARATE WORLDS
The separation was reasonable in times of stable and strong vertical market growth for each respective domain, but now falling voice ARPUs (Average Revenues Per User) and low rates are exerting tremendous pressure on both mobile and fixed operators as they increasingly compete for the same subscriber and service revenues.
The dynamics of fixed-mobile convergence are interesting with, in principle, the wireline operators and the wireless operators trying to eat parts of each others' revenue .
Fixed operators are attracted to the deal by the higher revenue growth prospects and EBITDA margins of wireless .
Wireless operators are looking to limit revenue decreasing into the value-add enterprise communications markets so far dominated by wireline operators.
THE MOVE TO CONVERGENCE
65% of users would prefer to have a single phone number for office, home and mobile.
Source : Yankee Group
~43% of mobile calls are made
from home (31%)
from the workplace (12%)
WHERE ARE MADE THE MOBILE CALLS?
ONE PHONE SERVICE One Phone Service allows use of a single mobile handset to make and receive calls on the mobile or the fixed network (PSTN or VoIP) Mobile Network Bluetooth/WLAN Access Point Bluetooth, WLAN GSM Fixed PSTN and IP Network
Cheap mobile calls when in Unlicensed Coverage
Personal communication with
ONE number , ONE phone and ONE voicemail
Single list of missed calls
Access at the same services (SMS,MMS,etc.)
Individual communication for every family member
Possibility to lower all rates in Home Zones
Improved indoor wireless coverage
One converged service: one number,one handset, one phone book and one bill
Improved GPRS speeds for data applications
END USER OPPORTUNITIES
Reduce the total cost of ownership for telecom services as a single handset has to be provided instead of two.
VoWLAN reduce cabling requirements (only access point need to be connected) and a voice and data services share the same infrastructure.
Wireless phones reduce the modifications required when an employees are relocated from one office to another.
Service specific networks .
The current infrastructures are based on the Multilayer networks
Duplication of function
This approach cause a tremendous impact on the CAPEX and OPEX of the TELCO Operators. In fact they have to purchase, install, and manage separate devices for each new network technology, and build out separate access networks for each new type of customer interfaces.
Continous pressure from the market to provide the existing
service cheaper . [Legacy networks in the existing infrastructure increase the risk
with cost of the services ( too expensive )]
CHANGE IN THE OPERATORS NETWORK INFRASTRUCTURES
Wireless Networks Will Be Packet Networks
Wireless Phones Will Be IP Phones With Internet Connectivity
Users Will Be Able to Connect to Any Service on the Internet
Most of the new services and application will be IP based and a change of the network architecture in the Telco operators infrastructures is mandatory.
PATH TO MIGRATE IN A CONVERGENT NETWORK
Mobile TDM Fixed TDM Converged IMS Fixed/Mobile Mobile NGN Fixed NGN FIXED - MOBILE CONVERGENCE THROUGH IMS
IMS SERVICE ENABLERS
IMS SERVICE ENABLERS A standard An enabler of new applications Next-gen network architecture Service-layer Control-layer Transport-layer IMS Services are emerging today IMS is key to fixed/mobile convergence Migration to NGN/IMS is an evolution process Needs to support interworking with legacy Push-2-Talk Push-2-View Push-2-X Presence, Location- based Services Interactive Services, Interactive Gaming Games, Music Downloads Picture Messaging, MM Messaging Voice Video Clips Sports, News E-mail IM Streaming Audio, Video Converged Services Rich Communications An enabler for innovative conversational service offers Management Plane Picture Source: Alcate - Lucent IP Network SIP SIP SIP SIP SIP At Home In the Office On the Move IMS SIP
TWO ALTERNATE VIEW ON THE IMS Operators (Traditional View) Operators (Alternative View)
Promoting convergence (Fixed and mobile,voice,data and video)
The applicability of the IMS concept extends to any kind of access, and should overtake present first attempts at service convergence of mobile with wireless access.
Enable faster service develop
The IMS platforms will help the Operators to introduce new services and to increase their revenues.
for users : rich service offering, enhanced experience
for operators : platform convergence, operating efficiency, protection of investment and decoupling of application and transmission layers
Protect future investments
MIGRATION PATH UMTS (R5) SHORT TERM MEDIUM TERM FIXED Access IMS LONG TERM GSM/EDGE PSTN Softswitch SOFTSWITCH UMTS (R6) FIXED IMS UMTS (R7) IMS
IMS OPEN ISSUES
IMS is an environment to build new services that still to be defined and implemented.
Some delays in vendors roadmap.
Some doubt in the TLC vendors community:
IMS will become a commercial product or will be only a
guideline to provide multimedia services?
The Operators Organisation are completely suitable to manage the IMS?
Today the network are managed and operated by technology : SDH,IP,ATM,etc,
In case of IMS there is not more a distinctions between the competence
in the O&M department.
The operators are still concentrated to migrate their legacy platform toward IP to reduce the operational cost.The migration toward IMS platform is not yet a priority in the short term for many operators.
The IMS Deployment require new OSS systems and Billing System
Without a sophisticated billing system, the full potential of fixed-mobile convergence
in the IMS environment will not be realised.
The Operators must manage a distributed architecture
Support integrated transport and switch networks
S eparation of network operation and services.
Potential waste of time and money
IMS still fails to separate connectivity from services
Market evolution can be triggered by making use of non-IMS FMC solutions
Pre-IMS: UMA access,etc.
OPERATORS ALTERNATIVE VIEW
Three solutions available to provide FMC and Fix Mobile call hand over :
Integration on the access level: UMA solution for residential
Integration on the core level: SIP based solutions for residential and business (support also IP Centrex and IP-PBX customers)
Integration on IP-PBX for business
FMC TECHNOLOGY CHOICE PRE IMS - FMC SOLUTIONS
THE UMA SOLUTION
Standardized in 3GPP GERAN
Called GAN in 3GPP
Originally developed as a way to extend coverage/reduce cellular congestion
Extends GSM call control to WLAN/Bluetooth accesses
Handset uses GSM/GPRS call control
PLMN services provided
Transparent to mobile core network
UMA technology enables access to mobile voice, data and IMS services over IP broadband access and unlicensed spectrum technologies (Bluetooth and WiFi).
Service providers can enable subscribers to roam and handover between cellular networks and public and private unlicensed wireless networks using dual-mode mobile handsets.
Subscribers receive a consistent user experience for their mobile voice, data and IMS services as they transition between networks.
Unlicensed Mobile Access (UMA) technology provides access to GSM and GPRS mobile services over unlicensed spectrum technologies, including Bluetooth and 802.11.
Fix and mobile access network are interconnected with different core network:
Legacy (CS and PS) for mobile access
IP - SIP for the fix access.
The integration is realized by emulation/gateway box placed between the core networks and using intelligent network’s services.
Call control and hand over is mainly managed by the SIP network.
SIP BASED FMC SOLUTIONS
Many pre standard solutions in the market including:
Bridgeport Network ,
provide NomadicONE Network Convergence Gateway (NCG),
in 2005 founded MobileIngnite alliance (33 companies including Converging )
New Step Converged Services Node (CSN)
Outsmart SmartFMC™ solution integrates SIP-based telephony (VoIP) into the mobile core network
UTStarcom Continuity FMC solution
Alcatel IMR solution
SIP BASED SOLUTIONS
Not yet standardised up to 2007
Only some solution will be 3GPP VCC easily upgradable
User terminals not available in the market, suppliers typically provide specified client running on PDA (Windows Mobile, Symbian,…)
SIP VoIP user terminals don’t promote user fidelity
Will users phone use Skipe or other VoiP low cost company?
Convergence operator are developing IMS/NGN solution for fix triple play services. This networks are usually provided by different vendors from the mobile core network one.
two different core networks : IMS for fix applications and mobile evolving to IMS.
SIP BASED SOLUTIONS ISSUES
IP-PBX solution are able to provide FMC solution for enterprise
This solution are SIP based but
The call control is managed by IP-PBX, not by mobile operator network
First solution was developed by SCCAN (S eamless C onverged C ommunication A cross N etworks) Forum
founding members of SCCAN are Motorola, Proxim and Avaya
Other solutions on the market including Cisco solution that uses Nokia Terminals
Convergence is now a reality for
Operators : new services, user fidelity, one network
Users : one bill, one phone, one number
Residential Fix-Mobile convergence now is possible with UMA.
We have to wait for IMS
There are now pre-IMS solutions to provide Fix Mobile Convergence